Before I say anything I am an anonymous internet poster just as you are so everything I say could be 100% wrong. However, I have gone through the law school process and would like to address some of your gripes.
SCHOOLS AS BUSINESSFirst of all law schools and educational institutions are businesses first and foremost. Try not paying tuition at Yale and see what happens. Schools everywhere try to make money they are a for-profit school there are plenty of Non-Profit law schools that charge the same or roughly the same amount.
All students should realize this and negotiate for scholarship money etc and always remember your a paying customer schools are offering you a service that you choose to pay for.
LAW SCHOOL CURVE:Most law school have a pretty intense curve I went to a "Tier 2 school" big whoop and only 35% of the students could have a 3.0 at the end of their first year. You had to have a 3.0 to maintain your scholarship 65% of students didn't and this is not uncommon almost all law schools do this as evidenced by this NY times article.
http://www.nytimes.com/2011/05/01/business/law-school-grants.html?pagewanted=all Almost every lawyer is not satisfied with their grades as law school curves are difficult. Look at the curves of other schools most do not allow everyone to get an A or B particular in their first year.
RANKING:When you get out of school you will realize how little this matters and that U.S. News is nothing more than a for-profit, unregulated, magazine that is offering an opinion. BTW they rank more than law schools.
http://money.usnews.com/money/personal-finance/real-estate/articles/2009/06/08/best-places-to-live-2009 (New Mexico is the best place to live according to them) unfortunately so many law students life altering decisions based on this magazine thinking it is some authority. My school since I graduated has gone from the 70's to Tier 3 and last year was in an 11 way tie for 84th. None of my clients, no judge I argue in front of, etc has any idea what my school is ranked and most have no idea what school I attended at all.
When you have a client that wants a result you better get them that result. If they go to jail for 10 years, lose 2,000,000 on a contract, whatever it is try consoling them by telling them you went to a Tier 2 school and not a Tier 3 school.
CURRICULUM: As stated above you are right schools are businesses and they do make it harder to transfer. PLS is not the only school to do this kind of thing THEY ALL DO. They want money PLS, Harvard, Yale, X school, all want money. They do not want transfers and so forth.
As to Contracts 1 and 2 my school did that and many do. When you take the Bar Contracts is a HEAVILY TESTED area and you will want to know all you can about it. I believe most schools do offer two semesters of contracts, but I can't speak for everyone. I know my school did.
FAILING OUT: Again most schools have low attrition rates for the same reasons I have repeated schools are business not just PLS. They have an obligation to kick someone out that they do not believe can pass the bar and perhaps that students took a special test or maybe that is a unique situation that is a problem. However, most schools don't want to kick out students they pay money and again SCHOOLS ARE BUSINESS. Law schools, nursing schools, business schools, undergrads, etc all charge tuition and want paying students at their school. This is not PLS phenomenon.
PROFESSORS: Again you can go to almost every law school or university period across the country and find amazing professors and bad ones. In any firm there will be lawyers and bad ones etc, etc. Your new school will have bad and good professors I am certain of that. I know mine did and every lawyer I have worked with from all caliber of schools loved some of their professors and hated others that is simply the way it goes.
CONCLUSION: I am an anonymous internet poster so everything I said could be complete B.S. and I have no repercussion if it is, but I would do a reality check your new school is going to charge tuition, have a strict curve, have bad professors, and so forth.
Maybe the curve is slightly better at the new place and maybe your Evidence professor will be amazing maybe they will be terrible you really don't know. Many of issues you stated are quite universal across all law schools and in education generally.