Well, I wouldn't homeschool my kid. I'm not cut out for it, and that's why I didn't become a teacher. Brutal honesty: I don't think very many parents actually are cut out for it, but that certainly doesn't make them bad parents. On the other hand, I'm sometimes horrified by the egregious errors teachers make, but that's because I'm a perfectionist. Once I learn how to relax, I figure I'll be a good counterbalance to any teachers that don't quite meet my own particular standard of excellence. We also provide a lot of extracurricular activities and cultural/historical "field trips" for our kid that schools don't provide anymore anyway.
I've been looking at the greatschools.org rankings lately too,(kicking myself for not being on the ball enough to get my kid into Didion), and honestly, roughly comparing the API scores, it looks like they could easily be manipulated by a few low-performers depending on the size of the school or (like many have mentioned) the performance of the ESL kids. I was surprised to find the only "bilingual" K-8 school (the Language Academy of Sacramento) ranks only a 3, but all of the parents I know whose kids actually go here RAVE about it. Plus, all their kids are bilingual, even if the parents aren't.
I also agree with previous posters on the fact that a lower-performing school does not necessarily mean your kids will do poorly or that it's a bad school. Definitely check the school out yourself. Form your own impression. And don't do anything out of desperation. So sorry to hear about the school closing though!!
Good luck!!