I tend to agree... they don't teach penmanship well. My stepson (now in fourth grade) writes all his letters and numbers incorrectly. He say he is writing a simple 1. He tends to push up on the page, rather than pull down. This carries over to all his letters and numbers. For an "o" he starts at the bottom of the letter and makes the loop... not the top.
Perhaps it was his prior school district (he was in a school that serve a low-income zone)... but I tend to be a bit skeptical of many academic standards lately. Now that he's with us, he's actually in one of the highest income schools in our area (a public school that is massively subsidized by private donations due to the neighborhood it serves). But in this district, there's still "standards" that disturb me. For instance, on his spelling tests he isn't forced to actually do any written-out spelling himself... the test are multiple choice!
Maybe you could argue that in the age of computers, typing and recognition are all that matters (because of spelling and grammar checking programs)... but I don't agree. It carries over to things like the multiplication table and long division (why learn it if you can have a calculator do it? For that matter, why even know any calculus if you can have Maple or Mathematica do it?). There's something about performing a number of more tedious calculations that can eventually lead to some recognition of the meaning of the process (especially if you return to the topic later with some other topics under your belt).
The basic skills are essential. Let's take homework... for homework (and in-class tasks), my stepson doesn't use a computer (except in the rare case of projects). Often his writing is completely illegible, which leads to him losing points because the teacher can't read his answer. Or, because of carelessness, he loses points because copying the word from the reading assignment takes too long (or isn't emphasized)... so when the correct answer is "habitat." he'll lose some credit because he feels ok writing "habetat"). Consistency is lacking.
There's a balance to be stuck between the basic "readin', 'ritin' and 'rithmatik" of my grandparents (some of whom only had a 5th & 8th grade educations) and some of the higher level subjects and tacks. I think that for some students (perhaps because of their schools) this balance is hard to achieve.
That's my rant.
Note however: my grandpa's handwriting was atrocious EXCEPT when he was keeping logs that related to the production and expenses of the farm... might also be the case here.