[UnderseaLcpl]

Originally Posted by Kapt Z

So equality of opportunity for ALL is actually a bad idea? How did that happen?

No, I think it's a great idea. So is Communism. Neither can exist, though. The closest you can ever get to equal opportunity is maximization of individual freedoms. The second the state steps in and says you must or must not hire/train/educate/trade with/etc... this person, equality of opportunity gives way to equality of outcome.

Maybe I'm just a naive optimist, but I do like to think things are a little better between the races, genders, and religions than they were when my folks were kids. They thought so. I do think the 'state'(meaning us) helped with that.

That's possible, and is a difficult point to argue either way. The one thing I will give the state credit for is preventing the state from discriminating, more or less. In that way, the state expanded individual freedoms.

As a principal of whatever school I would tell the parents the same thing-
"Mr/Ms was the best qualified candidate in our judgement to teach these courses."
Really, what else would you say?

You're looking at it backwards. Demand, and therefore capital, flows from the consumer. A business must meet consumer expectations if it is to continue. As a private school, a Catholic school is vulnerable to competition, whether it recieves state funding or not. If it fails to satisfy the consumers, it ceases to exsist.
You seem to have a top-down perspective, in which what seems to be the most efficient choice is apparent. It would seem more "fair" to hire this teacher, and should she indeed prove to be the most qualified, she would appear to be the wisest choice. Unfortunately, that isn't how it works. In this particular instance, selecting a Muslim teacher would almost certainly cause drastic repurcussions amongst the school's consumer base, resulting in the loss of customers. Consider the nature of religion, and tell me that parents would not withdraw their children over such a slight.

The alternative is to mandate hiring policies and curricula in all schools. This, though, creates an even worse set of harms. Whereas fallacious religious or personal convictions about school selection may harm some students, a fallacious state policy on education harms all students and their parents have no choice in where they are schooled, no escape.
The U.S. itself is a shining example of the failure of state-monopolized education, for reasons I am sure you are quite familiar with.

In this case, or in any other, the goal should be to provide individuals with the freedom to choose, (even if they choose poorly) whilst preserving the individual rights of others. That means choice in employees, wages, consumer demographics, etc.. for all industries. That results in choice for consumers and employees.
It can be argued that that business can also create a monopoly, but to give power to the state is to simply skip everything and willingly create a monopoly right away. Contrary to your assessment, the state is not us. You don't have a vote, and though you technically have a voice, it is very, very faint. In a best-case scenario, you are subject to the tyranny of the masses, and in the worst case you just get tyranny.

Never confuse Equality of Opportunity with Equality of Outcome.