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Charging is a special full-round action

You can't use this option unless you are restricted to taking only a standard action on your turn.
You can ready a standard action, a move action, a swift action, or a free action.

you cannot ready a charge because it is a full-round action

even when using the partial charge clause it is still a full round action that you are allowed to do when you are restricted to a standard action

Readying is a standard action.

On your turn you perform the free action of casting a quickened spell and the standard action of readying an action.

So what OP put out would happen, but not as OP described.
Wizard 2 would use his standard action to ready a counterspell against wizard 1.
Wizard 1 would use his standard action to ready a counterspell against wizard 2 and his free action to cast a quickened magic missile.
Wizard 1 starts to cast quickened magic missile, which is interrupted by wizard 2 beginning to cast counterspell, which is interrupted by wizard 1 beginning to cast counterspell.
If wizard 1's counterspell succeeds at countering wizard 2's counterspell then wizard 1's quickened magic missile is cast unopposed.

Also, both wizards now act on the same initiative with wizard 1 acting before wizard 2.

I see this as a problem with initiative. In several (not D&D based) systems initiative is done in a "first in last out" (FILO) manner in that actions are declared starting at the bottom of the initiative order and working up, then they are resolved starting at the top and working down. This gives the characters with higher initiative (aka the best sense of what is happening and how to respond to that) the opportunity to tailor their actions to what they anticipate lower initiative characters to do (aka their declared action).
For example with brace:
A character declares that he will charge. The character being charged has a higher initiative and is able to declare bracing against the charge as their action.
Conversely, a character declares they are bracing against a charge, all higher initiative characters are able to anticipate that character bracing and choose to charge some one else or just move up to and attack the braced character with out charging.

IMO the FILO initiative prevents the problems Jeff brought up.

Pretty much.

Does the GM want all control in this situation; the GM (who knows the PC is bracing against a charge) wants the enemy to charge and get hit for double damage or have the enemy move and attack, thus wasting the PC's action.

Or

Does the GM give the PCs all control in this situation; the player can ready an action to brace against a charge... unless there is no charge and the player can attack anyways.

GMs are able to have NPCs perform actions that are challenging to the PCs. PCs are able to make use of the things they spent the time putting on their character sheet. The GM and PCs share control over what happens (which, again IMO, is a large part of the appeal to pen and paper RPGs).

When filtering Spell Lists by school, the Spellcrash spells (abjuration) are returned when filtering for only illusion spells.