How would you (could one) change this, Waron? Just throwing something out there, not a carefully thought out How.
The competitiveness has to go away -- the feeling that your kids have to be 100% occupied in order to give them a fighting chance in the future.
Schools need to back off on homework.
Parents “above” that set let the legacy admissions advantage and golfs-with-Ivy-admissions-officers prep school counselor sort it out.
Kids seriously looking to get into highly-selective schools are a minority.
This does mean you’re opting your kids out of elite schools by not playing that game from an early age, but hey, you and everybody (the colloquial “everybody”—most folks) else.