Village schools - supply and demand

At one time, village schools tended to be for the children from that village - and we are not talking some pre-war golden age. 

Things change - at the moment I'm dealing with probs in one village about increased car parking near the school, because more children attend from other villages and have to be dropped off, and elsewhere supporting a family trying to get their second child into a village school that the older sibling attends. Class sizes seem to be very high in popular village schools - far higher than when one of my boys was at Barton School in the late 1990s and there were eight children in his year!

Clearly some of this is down to choice - people are more mobile, and word gets around about a good village school. Some of it is also down to growth in those villages where good transport links and good amenities bring in lots of families moving in with young children looking for a better quality of life. 

Just for information, the criteria for deciding which children get into oversubscribed schools in Cambridgeshire is:

1. Children who are looked after, with a statement of special educational needs which names the school or for whom this is the only school that can meet their long term medical needs.
2. Children living in the catchment area with a sibling at the school at the time of admission.
3. Children living in the catchment area.
4. Children living outside the catchment area who have a sibling at the school at the time of admission.
5. Children living outside the catchment area who have been unable to gain a place at their catchment area school because of oversubscription.
6. Children who live outside the catchment area, but nearest to this school according to the shortest available travel route as measured by a straight line.

Is the solution build more schools, or expand successful schools, or restrict choice, or encourage free schools?