I studied all my life in boarding school (from the age of 6), and I'm happy to say that I turned out fine. My dad struggled to put me through school, we were never very rich. He did it because he wanted to give me the best, the education he never had (he was in an ashram school, after they moved over during the partition). This was when both my parents had plenty of time on their hands - Dad used to be back by 6 from work, and Mom is a housewife. So it wasn't that either.
Anyway I'm happy to see your stereotypes alive and kicking. Boarding school is fine, and the world isn't really going to end in 2012, so drop your judgmental stance. If the parents are indeed doing it because they have no time to spend with the kid, he will have an unhappy childhood, boarding school or no boarding school. I would suggest you ask them to focus on the child. This is not a casual discussion, the attitude of the parents is the problem here, not the method of schooling. If you're second-guessing this, don't. It's not your kid. And these are not nice things to discuss on a public forum for technology, so don't mind my tone. Try a parenting forum.
As for boarding school life, it does give you a more wholesome view of the world. You grow up to be more competitive, and more ready to take on your peers in the real world. It gives you street smarts, and teaches you how to do things the right way. Yes things have changed recently, I went to school two decades ago. But if I was married, I would send my child there myself, in spite of whatever hardship I might have had to go through financially.
You'd be surprised if you knew my opinion of today's generation of kids passing from schools and colleges - shallow, cocky, arrogant and disrespectful, and without any of the merits that would make that behaviour bearable, such as knowledge, depth, and maturity. I guess the emphasis on academics at the expense of all-round development and the creation of good citizens is the way education has gone, for the most part.
I interview a lot of freshers and never cease to be surprised at the utter lack of any quality of knowledge, foresight, perseverance or consideration for about 90 per cent of them, and for most of the remnants, an inability to even have a conversation for 5 minutes. Quality people are rare, and getting rarer.
The general attitude seems to be of expecting life to be laid out on a platter the way their parents laid it out for them. Life is not about that, and that is what boarding school does. It teaches you how to lead a good life, how to be a good citizen, how to be courteous and respectful, and care for things beyond your immediate self. It gives you a wonderful network, that mostly lasts through life unless you choose to retire. I see this kid going the wrong way, but the cure is not the school, the cure has to start at home.