It depends on who you talk to. From what I hear from everyone, and from the amount of undergraduate and graduate students US universities get from overseas, I think the US still has a lock on having the best post-secondary education system in the world. It's not perfect, of course, but I think it gets things done.
What really scares me is the decreasing support I see for elementary and high school education by people who think that they have the magic bullet to fix everything. We've become too laid back since WWII, when there was a huge push for people to push themselves for excellence because of the cold war.
I have high hopes for the next few years, once we get out of the economic crisis (and perhaps in spite of it). There's no better way to motivate people to excel than to put real pressure on them.