There's a website called Nationstates that some teachers use as a teaching tool, for creative writing or social studies or whatever. Interesting thing is, Nationstates kind of isn't appropriate for school, but they have a school setting and account system that restricts certain issues and keeps them out of the forums. We could have a similar setting for accounts. Teachers can create their accounts as teachers, and students can sign up under them. Students can't use the forums, or view stories above a certain age level. Their stories don't take up space as titles, (A school story titled something won't take that title's space, so you won't have people unable to name their publishable stories certain things just because a School person wrote it.) and can only be published to the teacher and the class. This way, we aren't faced with the trouble of having loads of sub-par school stories, and teachers don't have to deal with our volatile community dipping in and spoiling their precious innocence.
Or, if you want a solution that'll actually happen, let's have a highly publicized article that explains how to use CYS in education: Ignore the forums, enable sneak peek, and keep the stories unpublished. Read them all through shared links, because, seriously, that's an easy enough step since your kids are all on computers to begin with.