Hi Bronxmom!
Your ds is still so young. The choice to leave the gifted school would probably be very challenging to reverse. (Is the gifted school public?) Grades really don’t matter until around 5th grade in many cases. Although his grades may improve at the regular school, he might actually learn more at the gifted school. Yet you don’t want your child to become accustomed to earning mediocre grades.
What makes the neighborhood school so sweet and progressive (besides proximity and familiar faces)?