I guess my big thing here is... is he getting anything out of the class? I mean, if he already knew the material but was enjoying the happy-fun-crafty-chaos aspect (I can see my 5 y/o reacting this way), then he'd be getting something out of it. If he weren't exactly having fun, but was learning something new, then he'd be getting something out of it. If he's just going to go, not to learn anything new and not to enjoy himself, then I guess it's a parental decision as to whether it's worth it on a spiritual/religious requirement level.

Granted, I don't know much about the LDS faith or religious structure, but it seems like religious education should up a child's (a) knowledge, (b) faith, or (c) happiness (preferably all three). If it's not doing any of the three for a given child, and it's just a requirement because it's a requirement, then I'd probably be more swayed by the kid's argument and find some kind of alternate arrangement for the year (assuming that's "allowed," again I have no knowledge of the bureaucratic processes involved). What does the church do when a child is cognitively delayed to a point where regular religious education classes aren't working? There has to be some kind of precedent...