I see nothing wrong with home-schooling (I was homeschooled for most of a year in 7th grade), if and only if the parents aren't insane or doing it for insane reasons.
If they can give a quality education (and I've noticed a lot of news articles popping up for how unprepared and brainwashed lots of homeschooled kids end up being), then home-schooling is okay. If they're just an excuse to brainwash kids, then no, not okay.
Okay, whatever, I disagree with this strongly, but the point is, even if you think home schooling should be legal, people should not be granted asylum because they can't home school their children in their home country.