I was homeschooled, and still technically am, although I do go to a community college and take college credits, which also count for High School credits (I'm a senior). Plus it's paid for by the state.
A few homeschooled kids that I know are, as Nebulous said, anti social people in a way. They're very old-fashioned, very strict, extremely conservative (I'm conservative, but these people completely re-define conservative......), and frankly quite annoying. But this is a small percentage of homeschooled kids that I know.
Academically, by 11th grade I was taking full-time college courses, like I mentioned earlier. One of my friends has already earned his COLLEGE degree in 3 semesters, and he's still in High School! (He was homeschooled).
Even without this I was involved in my church, in our homeschool group where I met hundreds of kids and made great life-long friends. For the most part, I think we're pretty normal kids if we were to get into a group of public schoolers. We would get along with them fine because honestly, they're not that different from us. We aren't a bunch of kids in overalls who never talk and are stupid because our parents don't have their Master's.
As for my parents, my mom was the one who provided the education. If it was something she knew how to do well, like in the earlier grades, she could teach me. When I got into high school and took tougher courses, she got me programs on the computer to use. Around our area there is even 2 or 3 schools for homeschoolers. Classes are offered for homeschoolers. Hundreds of kids go to these classes. I made friends there too.
I'm not for homeschooling kids and keeping them at home all the time. This breeds families that act like they jumped out of the 1800s and can't handle our current world. I've seen it in some of the people I know who are maybe part of our homeschool group, but don't really do their part. They're part of it by registration only, not by being active.
If you are a parent or will be someday and are thinking about homeschooling, I would definitely encourage it. Maybe see how they like it, and ask them every year if they want to get into the public or private schooling. But keep your kids involved in things, don't hide them from the world. Some parents I know have the attitude that they have to keep their kids FROM the world and the negative aspects that come along with it. Why not raise kids who can go out INTO the world and make a positive difference!?
I think making it illegal would be absolutely cruel. It should be encouraged as an option. It isn't for everyone, but the only way you'll really know is if it is encouraged, attempted, and uplifted.