I feel that the demographics of your area has a lot to do with things.

I agree with this. However I don't think that 50 years ago in other parts of the U.S. like the south and midwest students were taught the same way (however I would be happy to be proved wrong, I'd love to know that 50 years ago in other parts of the U.S. other cultures and religions were shared). I know that in Texas (where I grew up) it would have been unheard of to have given Jewish holidays off. I mean a student would get an excused abscense but that's about it.