No, many Catholic schools are fantastic, mine were. The problem is, as with anything else, people focus on the negative things and completely overlook the good ones.
As for the whole use of the Bible, people need to realize that Catholic and Protestant religions are different. They don't share the same beliefs which is why their Bible's vary. If they agreed on everything they wouldn't be two separate religions.
And no, liberal Catholic is hardly an oxymoron. It just means that you've accepted that the literal interpretation of the Bible is not true. If you're going to believe that Jesus taught to love everyone, then you're a true Catholic. If you pull out the OT and start babbling about rules and things then you're not a true Catholic in the sense of the word. The word Catholic in itself is meant to mean "universal" which includes not turning anyone away.
People are so commonly confused about the Catholic teaching on homosexuality. I've said it once, and I've said it 100 times, the Church does not specifically target homosexuals and say "oh those are bad people." The Church teaching is actually that any sex which does not have the potential for procreation is wrong. That meaning sex of any way, shape, or form, be it 2 men, 2 women, a man and a woman, whatever. Sex is taught to be something sacred and not something to be used with whomever whenever one wants. So it doesn't just mean homosexual behavior, it means any form of behavior in which the two adults are not wanting/hoping/accepting that a child is going to come from this.
And hang on, when did you win the discus?