The problem with PE where I live is that if you don't have it by 10AM, you are likely to get HEATSTROKE. Yes, I fainted many times in school growing up. I remember passing out standing by the water fountain... 90 degree heat and 90% humidity is downright DANGEROUS. Why they make little kids run laps in these conditions is beyond me.
Another problem is that they don't take different body-types/abilities into consideration. For example, I am great at sports that require strength, balance, and endurance, but I have really BAD hand-eye coordination and nothing can really change that (I have strabismus, a vision condition). It is VERY discouraging to get a bad grade for something you can't do much about and not be graded based on the effort you put in/progress you make/what you ARE good at.
Anyway, I am reasonably physically fit, come from a family of physically fit/athletic people, and am raising my children to be health conscious. I also work for the school system. And I think the system could use a LOT of improvement, especially in my state. If anything, the PE classes I took down here almost made me hate sports!