The following article describes a school district in Kansas that has attempted to eliminate traditional ‘grade levels’ going for a more achievement-based approach: http://barbara-pytel.suite101.com/kansas-city-schools-eliminate-grade-levels-a265813
I know that the use of online learning environments can definitely support the implementation of such a system as they can allow students to work at their own pace (Pelgrum, 2001), which is vital to a more achievement-based learning system. Through a system like this, the teacher would act as more of a facilitator, guiding students as they work on individualized programs. Even though the students are working at their own pace, through the use of on-line technology, students could be encouraged to connect and interact with other students who are working at the same level to collaborate on assignments, etc.
There is no doubt that technology can help to facilitate such a program. Here is an example of an approach to such a system already in place in a classroom where the teacher uses recordings to help teach various levels:
What are your thoughts on this? What are some of the issues you see with this?
Pelgrum, W. 2001. Obstacles to the integration of ICT in education: results from a worldwide educational assessment. Computers & Education. p. 163-178.