I see your point regarding the Chinese Public School system but i find it hard to believe that Li Yang's methods do anything to truly alleviate this.

Furthermore, 'de-programming', 'brainwashing' or 'reverse brainwashing' should not be the aim of any educational program. It seems to me (and as you've stated) that Li Yang offers a polar extreme to what is generally offered in the public schools. However, there is a large amount of middle ground that goes untouched to the detriment of the students.

Teachers should always consider students as individuals with various personalities, learning styles, backgrounds, etc. To try and change students to fit with a particular idea of what an ideal student should be just won't work. Whether it is the quiet and unassuming ideal student of the public schools or the 'brave and brazen' students that Crazy English wants to produce it doesn't matter, both methods are flawed by the way that they assume that one size will fit all. You can see the results for this kind of approach when you step out onto the street in China.

Most modern educators across Western Europe & North America work along very different lines. There is the assumption that students learn at different paces, learn better using certain instructions/activities and have a variety of personalities. Instead of trying to change the student, the educator should change and vary their approach in order to meet the needs of students. This is where concepts like 'leave no student behind' come from and this encourages educators to focus on things like tiered learning/instruction, learning style varieties, co-teaching, etc. etc. It's a far more holistic approach to education and in my opinion more successful and satisfying for all those involved.

I'm an old white male U.S. citizen who participated in a Crazy English summer program this past summer, in Qingyuan, north of Guangzhou.
I met Liyang and his wife on two occasions during the training.
I will not address the particulars of the program's mismanagement, the treatment of teachers, the cost to the students, and Liyang's personality... much of that has been accurately reported. Briefly, it was an experience that I found valuable but incredibly annoying and will never repeat.
But I would like to suggest that there is significant value in the 'Crazy English' program for some of the students.
I've been teaching in China for six years in colleges and corporate settings. My TESOL certification is from Columbia University in New York. I speak Mandarin.
I've observed that my university students with the best spoken English ability can be routinely characterized as brave and brazen. They are aggressive in their speech patterns and unconcerned about the reaction of their peers. As every foreign teacher in China knows, this is not the norm.
Any program that can somehow 'instill' this fearless attitude in a student attempting the awkward and unflattering process of acquiring a foreign language is of significant value, especially in China where the classroom is a cauldron of cultural intimidation.
I viewed the Liyang techniques as a 'deprogramming' of Chinese students, a 'reverse brainwashing', of kids too frightened to even ask questions in a classroom in their native language, who cannot possibly conceive of publicly stuttering unstressed vowels, final consonant clusters and other brutal realities of spoken English.
Does the Liyang program teach English? No. But for a cohort of students it presents an opportunity to become one of those 'brave and brazen' students who are ultimately successful in acquiring the ability to speak English.