Old Hippie, the concept here is that a land owner (the school) is trying to restrict ISM band 802.11 access points on their land to only be their authorized and approved access points. They're doing this using a countermeasure that intentionally interferes with any access points that aren't authorized.
The flaws in this approach are:
1. Radio waves don't magically stop at the boundaries of your land. Signals from other folks outside your land enter your land, and signals from inside your land exit your land.
2. The land owner does not own the ISM frequency band, they are an unlicensed user of the public's airspace.
3. They're protecting the wrong thing anyway.
(1) is the genesis of the FCC and the Communications Act of 1934. A constitutionally-minded oberver might ask why a radio dispute between OP and the school across the street is even a federal legal issue - it's because RF energy waves travel an infinite distance (though with vanishingly small power). It's this realization that radio waves don't care one bit about the boundaries of your land that requires a different approach to resource allocation and sharing for radio to maximize the public good of radio technology.
(2) ahh yes. This point is the part where I see people get confused all the time. *ALL* frequencies are owned by the public. That's the way the law works. Some frequency bands are licensed to an exclusive user (the government, a corporation, etc.) - when you hear about multi-billion dollar spectrum auctions, that's what's being sold, an exclusive license. Because it's a license, the FCC can still set some terms through their regulatory process. Some frequency bands are licensed to a use, and may or may not require station licenses. For example, FM radio bands are allocated to that service, and stations that want to transmit above a certain exempted power threshold have to go through a pretty serious licensing process. And some frequency bands are licensed for "unlicensed" use, subject to various ground rules and device approval. For example, the 2.4GHz ISM band, which was once thought to be useless, is set up for unlicensed use within a set of regulations. One of those regulations is the nearly universal FCC regulation that devices must not intentionally interfere with other users of the same tier.
Many business and even government types are used to *owning* things, which means that they can legally control access to them. As a business owner, you're used to the idea that you own (or have an exclusive lease to) your building, and you can lock the doors, or require a badge for access, and, most importantly, if somebody is on your premesis without permission, you can have your security people escort them away or call the police to do the same. It's your property, it's your boundaries, and it's necessary that you preserve the security of your business. They're so used to owning things that they have trouble dealing with things they might use and depend on, but don't and can't own. And often they deal with it by just applying the ownership model they're used to, even if it doesn't apply.
You don't own the ISM band. Neither does the school system. As neither of you have any ownership/property rights to the band, you also have no right to exclude others from use of it. We are all guests as 802.11 users on the ISM band. The public owns the band, users are guests. No guest has any right to prevent any other guest from using the resource.
This, of course, does not stop confused folks from trying. If you let them routinely treat the ISM band as a resource that they own, then by default, they do. Ever heard the phrase "possession is 9/10 of the law"?
(3) So why is an enterprise concerned with a rogue AP anyway? If your network is designed such that anybody can walk up, plug in a Linksys AP, and bridge the public airwaves to your network, your network security sucks. Unfortunately, that's exactly the problem that a lot of large enterprises have. They have no internal security, and they think that the solution is to have really aggressive border protections. Since the 802.11 public airwaves are a border, obviously, they must aggressively protect it. This approach is what security folks call "crunchy outside, chewy inside." Once the next wireless technology comes along that their currently installed defenses can't see, they're wide open. If a user enters the premesis with a laptop, they're wide open. And so on. This kind of approach to network security is just totally doomed to failure, yet it's the overwhelmingly common approach still in 2008. Rather than fix the problem the right way, most large enterprises are still investing heavily in border defenses like active 802.11 rogue AP detection techniques. If, instead, a rogue AP can be physically plugged into your network but won't be able to get anywhere due to your internal security measures, you don't need such a thing.
802.11 exists because there was an unlicensed band available to all that it could work in. It wasn't large enterprises and government that really made 802.11 popular, it was small tech companies and hobbyists that were the early adopters (yes, the gear was Lucent and Proxim). If the ISM bands cease to be a public resource and become a resource that is controlled by the biggest bully on the block, then it will also lose the level of technical innovation and growth that we've seen so far. Early pre-802.11 WaveLAN sucked compared to what we have today. But try to explain public good and technical innovation to most large enterprises and you get blank stares - they're too focused on THEIR NEEDS to look at the big picture.