I'm with you for the most part, though do you consider things like History as part of the three R's? Civics should be in there as well, if you're voting you should know what you're really voting for. Though what you cover in history is a big hot-button topic. You can't possibly cover everything, even if you just concentrate on US history.
I'd add a 'safety' course - gun safety, safe sex, safe driving, chemical safety, first aid, etc...
And yes, you don't pass the grade without scoring high enough.
Well, short of those so retarded that they would never realistically pass the materials and it's best to just give them a 'modified' diploma.
Sorry, I should have been more clear. Yes, that includes history, literature and other subjects in the humanities.
I don't think reading and writing can really be taught without those subjects. In order to read, you need something to read and to write, you must have something to write about. Basically, I see it as two birds with one stone. There is nothing more effective to train a person to think and rationally approach a subject like some intense eassy writing. Being able to outline points and organize thoughts requires a person to think about the subject they are writing about.
IMHO, a big factor in lack of thinking is the move away from testing with short and long essay/long answers and to testing with multiple choice and standardized testing.
I also didn't mention science, but that's one that should also be stressed. Basic biology, earth science, physics and chemistry are not that difficult. I think one thing in HS that loses a lot of kids in these subjects is they go into stuff that the average person will never need to know. The stress should be on the scientific method and stuff that actually comes up everyday. One that kicks me is that physics (which is more applicable in daily life) is the "hard" class that's optional, where as chemistry (which, based on my HS class) has much less daily applications. The focus is on application in a lab setting rather than general knowledge and daily application which loses a lot of students who would otherwise not only do well in the subjects but actually can use the subjects. Plus, I think Earth Science should get more stress.