Yes , the pretence has become an embarrassment.
Yes, tell the Queen.
Yes, until there is unimpeachable proof that any deity exists, we must consign all religions to the skip. Religion is divisive and pollutes the minds of seemingly otherwise rational individuals. Faith is an abstract concept and can be acquired in a moment, experience, education requires a lifetime. The idea that you are required to die before you achieve paradise, proves all religions are thinly disguised death cults...
No, I think children should have some idea of what happens in church. Most parents will never take them. In state schools divinity masters are generally Anglican, if they're not Hindu or Buddhist, so it's all done in a spirit of ecumenical candy floss.
The church underpinned British society for over a thousand years. The pub replaced it when the people lost interest in divine goodness following the two world wars. That's dying now, what with the breathalyser, the smoking ban, and the price of beer. Society is fragmented. If people are to come up with a new inclusive concept they need to know what has worked in the past.
Because it's the majority belief
Beliefs have no place in education.