Good way to bring up kids I say, after all what doesn't a head in the sand solve?
Actually, I've changed my mind, why stop there? How is this sort of thing not discriminatory, or is it just the fact that we turn a blind eye on it for fear of offending people? When it comes down to it, I don't really object to what they teach people in segregated schools, because if people want to do that to their children, it's their call (I don't agree with them however, and will happily say as much).
But you get to things like "Under the policy, non-Muslim teachers would be banned from teaching sexual health classes." and it seems awfully blatant. What about if I decide I don't want my children taught anything by Muslim teachers, because I'm worried they'll warp my children's attitudes to life, exposing them to increased risk of becoming suicide bombers in the middle east (No, I'm not implying that all Muslims are terrorists, I'm just saying that the statistics are with me on this one - the vast majority of suicide bombers in the middle east ARE Muslim, and I think that's roughly a suitably half-assed basis for comparing my retarded conclusion there with the one about how anyone who isn't Muslim isn't able to teach sexual health in an appropriate manner).
Surely this is no different to assuming that sexual health being taught by a non-Muslim is going to turn your child into a brazen hussy likely to be knocked up by the first passer-by. I'm sure catholic nuns are just as dogmatically qualified to preach about the wonders of pretending that sex doesn't exist, so why leave them out of the fun?
Edit (again): In order to respond to responses which are likely, yes, I'm aware that such restrictions occur in most religious schools, but I'd object to those as well. Personally I see religion and education as two competing interests, so perhaps that's where my objection to faith-based requirements comes in.