The Washington Post has an article about a number of schools in Fairfax County, VA that are trying "looping" with their grade school classes. The technique involves moving the entire class (or close to it) up to the next grade level with the same teacher.
The technique appears to be working in some ways. Although there are concerns over teacher burn-out and kids being kept amongst other kids with whom they do not get along, the increased productivity and decreased disruption due to the common expectations between the school years seems to be an asset.
At one school, in Prince George's County, VA, the entire first grade class was looped into second grade, with the result being a 39% increase in standard test scores over the previous class.
Looks like the virtual one-room schoolhouse may be on its way.