"If you had any real concern for education you would want more power in the hands of parents and an increase in the number of options available."

Absolutely, but why do you think that argument is a defence of a mandated second system of a mandated faith?  Do you think the fact you've raised the available options from 1 to 2 offsets the fact ALL faiths can use the first school equally but the second one has some pretty firm faith restrictions they seem intent on fighting to maintain and that might drive away those that disagree? I wonder if we poll Hindus or Muslims or Shintoists or Jews to see whether they consider the Catholic school a viable second option for their children, what they'd say.

This falls firmly under the illusion of choice, not actual choice. Only in Canada would we see people arguing that one of the oldest, most staid, most hoary institutions in the world is a vector for change and options!