I'm not sure where you are in PA, but it sounds similar to our district (except they wouldn't consider using GAI). Check to see if they even consider outside testing, as our district will not - they insist upon administering the test and choosing the test (WISC, SB, etc.). I understand that PA standards require that other things besides IQ should be considered, but since that is the only hard number that is mentioned in the statues, that is the one they go on (and many other districts near us do the same).
I think the reason this happens is because of a class like that of my DD17. It was her class that prompted some changes to the admissions to gifted. Almost 25% of her class was identified as gifted, and quite a few were admitted in ways other than FSIQ. I'm not saying that those kids should not have been in the gifted program - the vast majority should be there - but it is just too large a number for a gifted program.
Also, like your district, there really isn't much to the gifted program. We had our kids identified in middle school so they would get automatic admission to a special course in HS, but there are other ways into that course. The math acceleration is based solely on testing (ERB & Iowa), and that doesn't start until middle school.
All of that being said, I don't know of many folks who moved their kids out of the school because they were not in the gifted program. These are bright/gifted kids who would be bored in any elementary program, even the really good private schools in the area. Most just waited it out and supplemented with afterschooling, summer programs, etc. Some kids, such as the PG ones, probably were never challenged, even in HS. Some did an extra acceleration in math (i.e. Algebra I in 6th grade instead of 7th), but other than that, they were just very involved in a bunch of activities and hung out with other bright/gifted kids.
I don't know if just being involved in a lot of stuff & hanging out with bright kids works for your child. I would take a look at the high school profile (the info they send to colleges). See where the kids went to college, how many went to "elite" schools, average SAT scores, etc. If the SAT scores are high and a lot of kids went to "good" colleges, your kid will be around a lot of other bright kids (which should help him cope with the boring schoolwork).
