The few schools whose language choices I saw were possibly not very representative, then... in fairness, even with the rapid decline of French, it might still have a slight edge in terms of usefulness over German, if nothing else because Germans are less likely to have difficulties communicating in English.
Don't you think that for people who don't go on to study other languages later, Spanish would be better than Latin, though? At least, if you assume them to be roughly equivalent in terms of academic rigor, which as you point out may not be the case...
In the places in Europe where Latin is still taught at HS level, like here and some parts of Germany, they're always careful to not let it crowd out any modern languages - it's certainly an enrichment if you can take it, but it shouldn't put you back in your knowledge of modern languages which you will actually need to communicate in.
Heh. That's sad. Though looking at the French of some people I know, who have all had the usual eight years of French classes, it's not surprising or particularly American, either.
My high school offered Spanish, French, German, and Japanese, with Spanish being the most popular choice and Japanese the least. A nearby cousin, in a school with about 500 students per grade vs. the 400 for mine, had the option of going for Russian in addition to the ones I had. That was in the late '80s.