Thanks for detailed explanations, Cyrus!
I am no LSAT guru
but here's my two cents. I do agree with you that the passage seems to imply that law schools do incorporate little bit (not clearly not enough) of training in statutory law. As you mentioned, lines 4-5 and also lines 7 -8 when it says focus on judicial decisions lead students to think that the practice of law consists *mainly* in analyzing past cases seem to suggest that. Also, in lines 40-41, it says "one possible argument against including training in statutory law as a standard part..." which seems to suggest that the author is for the idea that training in statutory law needs to be included as a standard part of curricula. All these seem to imply that statutory law is touched upon in law schools but not adequately, and certainly it's not part of standard curricula. And clearly, in lines 45, the author says that some law schools do provide "some training in statutes."
But among the five evils, C does seem to embrace the crux of the passage the best.