I work for a large new company in the UK who were once an LA! We developed over 60 school websites in SharePoint 2007 very cheaply (for schools) and had really good results. One day set up and the school managed it afterwards, as they had the skills in house as they were using a SharePoint based Learning Platform. In reality, they have just used my service for support when they needed changes as SP2007 was a tad unwieldly to use in the real world.
Moving forward we will be moving those 60 schools websites to Office365 Public Sites which will give much better looking websites and also much more intuitive to update.
If you would like any further information, or example 2007 sites we have live at the moment, drop me a PM!
We've designed and created 20/30 external websites Using SharePoint 2007/10 for primary schools. Here's a few http://www.st-barts.bolton.sch.uk Lever Edge Primary Academy Home Our Lady of Lourdes Home http://www.st-brendan.bolton.sch.uk The only issue I have is with templates. There aren't any decent free ones that Microsoft provide which is a scandal with the licensing you pay. Topsharepoint came through with a couple of free ones. Thankfully, 2013 are offering far more friendly and aesthetically pleasing template designs. Can't wait to play once we move schools to Office 365.