Testing
I agree with you about the problem with testing and teaching to the tests. The biggest problem is that teaching is focused on the bottom of the bell curve and those at the top of the bell curve are bored.
Another problem is that the tests tend to be multiple guess type that can be quickly graded. What is missing are essays that can show if the student is showing either analytical processes or if they are BSing. There are no oral evaluation and too often there isn't any practical testing (finding the bug in a machine).