Toddjames - I get what you are trying to say about co-ops vs. "solo" schools. I agree with you.
I'll use the 200 kids example. In a school of 40 kids, just about every kid in school is participating in everything all the way through grade school. With 40 kids, everyone has to participate to keep all the school organizations going, plus they get more participation time - less kids = more "reps" if you will and more personal attention from the school staff. Therefore, you get a larger percentage of kids from the 40 student school that excel at sports, music, school paper, academics, whatever it might be.
In the 200 student school, you will have a larger percentage of students that sit on the sidelines and let the more gifted ones do the participating. Therefore your pool of involved kids is smaller in the 200 student school.
So in summary, in the co-op of the five smaller schools you will end up with a larger combined number of kids that excel. In the 200 person school you will have a smaller total number of kids that excel.
Does that make sense to anyone? It's OK, you can call me nuts if you want!