I'd echo a lot of what scouterman said. The scouting experience on an individual level varies a great deal from one unit to another. I'd caution against throwing out the baby with the bath water. Leaders' backgrounds, abilities and experiences all vary a great deal. The kids interests vary as well. For all the negatives that exist in scouting there are many positives as well and I think on balance the positives out weigh the negatives.
Keep in mind, especially at Cub Scout ages, there are plenty of kids who have not been away from home overnight, have not slept in a tent, let alone used a pocket knife...... Finding a balance between all the varying backgrounds and interests is a tough job.
What scouting needs are leaders who buy into the program and are willing to put in the time to make a troop successful.
I was a boy scout as a youth, an adult boy scout volunteer, and am now a co-leader of two girl scout troops as both my daughters are in girl scouts.