There are plenty of good reasons for homeschooling. My personal thought is that if school districts wanted to get in on the action, they'd have downloadable lessons available for homeschoolers, home/hospital students, expellees, etc.
Of all the reasons I've heard for homeschooling, though, this one is among the worst: a teacher might molest your kid. Granted, there have been plenty of stories in the news about teachers (often women, it seems) doing the dirty with their students, but what is the probability that it will happen to your kid? And how does that probability relate to getting struck by lightning, or of dying in a car accident?
Sounds like hyperbolic hysteria to me.