Santa, I agree with you completely.
Can you please be more specific in your second question? I can only answer "Before asking if history should be taught, we should ask ourself what we want to accomplish while teaching something", then realizing if history meets the requisite to be needed.
My opinion is that school should not form "culture" but lay its foundations, meaning "foundations for a free mind". If you agree with that, history can teach one of the thousand ways to think about a fact, in the perspective of cause/effect, starting in a small scale and going concentrically to larger scales, being able to reason in multi levels. I repeat: founding minds, not notions: well yeah, it's fundamental.
History isn't scientifical, but it has its purposes in analyzing the past events because, by interpretating it, we can try to predict (with mere casuality) future exploits before actually starting a new event/course. Applying it to sociology, antropology, etc, its uses are immense.
Example: today it's clear that leaving a broken Germany at the end of WWI posed an ideal ground for revenge feelings, and that a ruined economy led to desperation and prepared the field for populists of a certain kind (people that would have never found a national audience with their ideas in a normal situation) leading to WWII. Well, someone foresaw a similar situation during these months in Greece, with the crisis, and now look at the astonishing result achieved by neonazis there.
THIS history I'd like to find in schools. Links between different areas of humanities. Way of thinking, not thoughts themselves. History is not cronology. Its purpose is not to tell us that there was a revolution in France in the late XVIII century, but to make us ask why it happened and why it ended that way.