After all, whose places are those "lottery winners" taking? Kids who live in those districts and originally went to those schools, and now have to go to lesser-quality schools, one surmises. Free school choice instead of school districts is definitely a good idea, but you need more than that to tackle the problem of the bad schools. It's not as if you can just endlessly keep increasing the capacity of the good schools while closing down the bad - it doesn't work that way, except perhaps in some very specific circumstances.