Let me make this clear:
FACT: DS did well in a math test. (There is no trophy or winner per se. DS was in top 1%, and there are more than 50 of them state wide).
DISTORTION: GT teacher and principal told the local newspaper reporter that DS goes to math olympiad next.
Statistically wise, link these two things together is like guessing one number right and winning the lottery.
There are rumors of of school budget problem and the first thing they might cut is the elementary schoool's gifted program. It is just my wild guess that the principal and GT teacher want to make a fuss about DS's story is just one effort to save the program and save their jobs.
No matter how good their intentions are, I have feeling that the absurdity is going up. For example, GT teacher told 5th graders that DS spent five hours on math every day.
Don't conflate the suggestion that your DS might do Olympiad stuff with the publicity stuff though - I'd suggest saying no thanks to the latter and yes PLEASE to the former. In a school context, Olympiad prep is probably the smoothest path to real challenge and, if successful, contact with other really strong mathematicians.
