Well the bit about pledging allegiance to the Queen was widely reported (and the BBC for example still lead with Pupils 'to take allegiance oath'). AFAICT the situation seems to be that pledging allegiance to the Queen is one suggestion - so whilst it's not correct to say this is a definite plan, I'd say it's still reasonable to be critical of this. Even if the pledge doesn't involve the Queen, there would be the question of whether pupils can not take part without being penalised.

It does seem to be the case that there are other parts of the report which are sensible, which have been given little coverage in comparison (the BBC briefly mentions this on one of their blogs), so to be fair to the Guardian, the entire spectrum of the media seem to have been guilty on this one.

(I'm not a Guardian reader btw, though I probably fit it's stereotypical demographic rather well...)