Oh yeah...I wouldn't let that stand. Data does mean something.
Here is what I see our media specialist doing (I volunteer 3 hours a day there so I see a lot). At the beginning of the year they test and the kids know their level range. One book they select must be in that range. The second book can be higher especially if they have a parent or sibling who will read aloud to them or if the second book is a non fiction on a topic they are very interested in.
Then as the year goes on she suggests that they stretch and look at books the next level up and see if it is a book they are interested in read a random page and see if it would be a "good for you" book. Then they test again and get new levels. And it starts over.
She does tell kindergarden children who barely can read that they can't have certain books unless they check with the teacher (sitting right there) so the teacher says yes her sister is going to read that with her or no let me help you find a good for you book that is like this one.
Some of it is that there are only so many copies of each book. For example, diary of a wimpy kid books (5th grade reading level)...very few of the 1st graders can read that high (in our school)... It is saved for the 3-5th graders who can actually read it. Someone like my son would be allowed to check it out earlier than that but a first grader reading on a first grade level would not be allowed to have it for two weeks. More of a supply and demand problem. We have 1000 kids and one copy of each wimpy book in English and one in Spanish.
