will in turn result in changes in policy (including pay and benefits). I don't understand what your arguing here.

"the market" is really a feature of cultural evolution - natural selection playing out in variation, selection, and retention. (Some might be understandably think that using evolution to analyze cultural changes is metaphorical - if so, check out David Sloan Wilson's work on multi-level selection and evolution beyond the genetic realm (to include epigenetics, behavioral learning, and culture/symbolic transmission)

The policy noted in the OP, is a selected variation for now, doesn't matter what kind of economic market or non-market it exists in. It is still subject to these forces of change. Whether it will continue and/or spread to other districts will not be a matter of "should" but a matter of what unfolds. If it functions in a way that allows it to continue to be selected in some way it will be.

Perhaps a portion of parents will be upset and will remove their children from the school district that implements such a policy. And maybe enough of that will happen that the policy will change.

From my personal perspective - I feel quite inclined to trust that the administrative decision is happening for a good reason.