Honestly, I think a more ideal system is the way the Clans operate in the Battletech Universe:
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I'd soften the barriers between each caste system, considerably - but I'm not at all opposed to a highly competitive society with eugenic overtones.
Realistically, it would be dangerous to impose this system - even on the generations of individuals produced by it. While I like the idea of the system, and believe eugenics to be an important consideration in a population as large as ours... I do not believe it ethical to impose.
The best middle-ground I can come up with would be to have genetic databases that track the population for a few generations and attempt to detect genetic correlations between physical and mental characteristics (both positive and negative) - then use that information to make a sort of "match making" service available, as well as a "risk assessment" service available, also (to help determine whether or not you should look at gene therapy solutions for your children since they may have a high risk of carrying genetic complications).
But this would be a sort of public-service initiative - none of it should be mandatory aside from, possibly, collection of DNA and physical records (though people will probably freak right the hell out when you start telling them that you'll be collecting their DNA and gaining access to your medical and school records).
Like it or not, our physical bodies are part of a process that also produced animals and allowed us to become the sentient beings we believe ourselves to be. We are not removed from natural selection - the system is always "above" us. Even now - there are elements of social selection imposed by the environment as well as individuals of our society (have big boobs? Lucky you - most of the male population wants to impregnate you). There will always be selective forces acting on procreation.
The question is just how much of a conscious role do we want to play in that (there will always be factors beyond our control, however).
I want my kids to have every advantage possible - and I will be interested in the capabilities of genetic engineering by time I am looking at having kids. Doesn't mean I'll have it done on my kids... but I'm open to the possibilities.
I understand where you are coming from... but at the same time - it's fairly selfish to have your own satisfaction at the almost certain detriment of another human being, who will be forced to make the same choice: "Pass on this curse to another generation to satisfy my biological urges... or not."
It is a cruel condition...
