The way I see it is that if you are paying for your child to go to a specific school it is because you are approving of the curriculum they are teaching and the methods they are using to educate your child (be it hasids hitting kids or nuns slapping with rulers). And as long as the amount of physical interaction is not to the extent that it is illegal were it to happen in your home, then the state should leave it alone.

(And this is also an excellent reminder of why ZERO tax dollars should be going to any private religious institution -- for ANY reason!! In "real" schools, you don't get to hit my fucking kid.)