This is a topic that I feel pretty passionate about because I am currently studying and teaching history (cultural/art history, specifically American performance history).
I hear a lot of people saying that we've lost touch with history, but I see it everywhere in everyday activities, not just in classrooms. The rise in local cultural festivals, the surge in historical fiction in bookstores, the increased interest in family geneaologies, the success of the history channel, etc... More and more, elementary and high school teachers are finding ways to make national history come to life for students, primarily because of the recent trends towards social history, a shift away from wars and generals and towards the daily experiences of everyday people. It is a good shift, I think, because it allows for the inclusion of experiences by certain populations (women, African-Americans, Asian-Americans, etc.) that have been previously neglected.
Teaching history is complicated because there are different points of view about what should be taught. Whose history and who decides? Did Columbus "discover" America, or did he lead the "conquest" of America? I'll never forget the day I came home from 1st grade and told my dad (another historian) that Columbus discovered America...I was only 6 but I began to understand through our conversation that I was only getting one side of the story.
Yes, history is important to a student's education. And national history is key because it teaches vital lessons of citizenship. But I also think that students need to learn more about *how* history is written- what decisions are made about what stories get told and who gets to make these decisions. History may be about the past, but it is always written in the present and it can tell us just as much about ourselves as those who came before us.