The last I heard, Illinois is the only state that requires physical education throughout grades k-12. Unfortunately, most physical education curriculums are still focused in on teaching sports and other games. While teaching sports games should be a component, the kids really need to learn about how to lead a healthy lifestyle. This is particularly important for kids who simply aren't into sports. Many times these kids are instantly turned off because they aren't good at sports. However, there's a lot more to physical education than just sports alone.
The other big problem with physical education programs are the fitness testing. They need to stop comparing kids to normative values and evaluate by way of relative improvements.
Quite honestly, the way that most physical education programs are currently structured, they might be doing more harm than good. And, it's a shame. Fortunately, a lot of the "old school" PE teachers are starting to retire and the new generation of PE teachers are replacing them. So, hopefully, physical education will begin to take on a new perspective with respect to curriculum and programming.