Wow, that stinks. Sounds like they are not trying very hard to make it work. When we grade accelerated DD I was worried it wouldn't work and then could we move DD back? And the basic attitude was that once you do it, you HAVE to make it work out--you don't do these sorts of accelerations on a trial basis. Total 180 from your school (probably either extreme is no good). Plus it sounds like the problem is not really your child so much as them worrying about things being difficult on themselves. What do they mean his reading level is below grade level? And what does that have to do with acceleration for math?

I have the same concerns about homeschooling. I think it can work if the child has plenty of other options to socialize and you can form a network with other homeschool kids. We don't have kids that live in our neighborhood so everything has to be arranged ahead of time and put on people's calendars. For us, it wouldn't be easy. Plus I know the kids really enjoy going to school even if the work is too easy. They like being with kids the same age. Tough decision.