"Makes you wonder if, had the schools spent less effort attempting to block the kids from non-educational activities, the kids might have directed that self-directed learning impulse toward the education."

Somehow, I don't think so. Why were kids trying to get around the blocks? To go to Myspace, Facebook, play Farmville, play World of Warcraft, and listen to/download music. If they had no blocks, the kids would do one or all of the above with ease.

Having no rules won't suddenly change a kid's mind about education. It will just introduce chaos.