Yep, a big problem with the E-Rate/USF program is that nobody really knows how to integrate technology into the classroom. It seems like most of the time the thinking is, "throw a computer in the classroom and our elementary/middle/high school will become smarter." The only thing I remember doing on the computer in elementary school was playing 'Oregon Trail'.
There is a Christian private school here in Atlanta that has done an excellent job of integrating technology into the classroom (without the benefit of the E-rate program and at less cost per student than Atlanta city schools I might add). Teachers are given tablet PCs with the ability to project what is on the tablet on to a screen for all the class to see. This gives the teacher the freedom to walk around the class and interact with the students while also accessing information, putting notes up on the screeen, etc. The teachers are still coming up with ways to best use the technology but all seem very excited about it.