When I went to school physical education amounted to teachers bullying kids into running around a field in the wet and cold usually or handing out a ball and everyone played a game they'd play during the break if someone had brought a ball.
In short it was BS.
This is something people have talked up and talked up during the olympics here in the UK but I would take no exercise if my option was to repeat what I did at school.
Now I love the gym, I dont know why schools dont have something like that instead, I've even seen amusement arcades in which there are bicycles which are hooked up to the machine, granted they are not the most popular but they are there, something like that would have been an awesome alternative.
I think that if schools had something like this they could even offer early morning, lunch times or afterschools clubs using this equipment and it would be a different story to the my own experience.