Here are some brief [and admittedly inchoate] thoughts, as I'm not quite ready to invest in writing a formal essay about your very important question with respect to what an Algebra 2 course should contain. (I am also purposefully avoiding a discussion over whether an Algebra 2 course should be required for students to complete secondary school, or even whether it should be a college/university requirement.) That said/unsaid, my thinking right now is roughly as follows:
I believe that the study of linear equations is important, and that linear algebra is an area that can be pursued with theoretical interest and/or for its practical applications. So, I think that an Algebra 1 and Geometry experience that really builds an understanding of lines and systems of linear functions is important. For Algebra 2, I like the idea of segueing from lines to piecewise linear functions to a specific example of a piecewise linear function: the absolute value function. I think that a lot of analytical thinking and reasoning can be built into a rigorous approach to absolute value functions, equations, and inequalities, and that this can lead nicely to quadratics, which have analogies with absolute values (concavity; x-intercepts; vertex; y-intercept; defined by three parameters/constants) and can pave the way towards the more general study of polynomials. (I also think that insufficient attention to absolute values is unfair for students who will pursue Calculus courses that use delta-epsilon proofs, or go on to major in mathematics and take courses on, for example, Real Analysis.)
Through solving quadratics, one can get some wonderful experience with rigorous mathematical thinking (including the broaching of complex numbers). I wrote of a problem set that I used last year in my Algebra 2 class in my answer to MESE 12977, which should give a rough impression of the sort of questions that I think an Algebra 2 student can be prepared to answer. In my own experience, it is possible to pursue quadratic functions, equations, and inequalities in a way that sets students up to launch into polynomials, or complex numbers, or rational functions, or limits ("end behavior"), or a variety of other topics. However, I feel that there is a complete overfocus on factoring quadratics (and, for what it is worth, would prefer to see a greater number theoretical focus on factoring whole numbers at other points in a school curriculum).
As an addendum (just for fun) here is a blitz treatment of quadratics that I think can be informative: Consider the two primary ways of writing quadratic functions.
We can move from one representation to the other by expanding the latter and matching coefficients.
But, in my classes, we note that $x=h$ corresponds to the line of symmetry for a parabola, on which the $c$ from standard form has no effect; thus, in particular, we set $c=0$ to find roots at $x=0$ and $x=-b/a$, so that a line of symmetry between them occurs at $h = -b/2a$. Since $k$ is the $y$-coordinate for the vertex that has $x$-coordinate $h$, we note $k = f(h)$. This is enough information to move from standard form to vertex form.
To move in the other direction, we rearrange to find $b = -2ah$ and observe that $c = f(0)$ is simply the $y$-intercept of $f$. Bearing this in mind, we derive the quadratic formula rapidly from vertex form:
$$a(x-h)^2 + k = 0 \implies x = h\pm\sqrt{\frac{-k}{a}}$$
which yields the quadratic formula in terms of $a$, $b$, and $c$ by using the above substitutions of $h = -b/2a$ and $k = f(h)$, although the latter is a bit tedious to compute. All of this is to say, I find the idea of bazillions of quadratic factoring exercises to be a suboptimal use of time, since one can really get into some deep mathematical thinking by experimenting with graphs (see also the end of my answer to MESE 12286) and then diving into algebra in ways such as the derivation above.
(x-h)^2/a^2 + (y-k)^2/b^2 = 1
, which I found rather useless until having to take my third semester of calculus as an undergrad, where it not only generalized to the quadric surfaces, but also led the way to other ideas like the normal form of a plane, etc., which only deepened my understanding of the topics. $\endgroup$