Good points all.

No DS is not unhappy. As long as he gets to choose something on his level *and of his interest* for independent reading (he is reading "count of monte cristo" for independent reading) he's happy ... He's fine with the instruction group... he says he is in the highest group so what else can they do?

I just wasn't sure if I should do something but these are all really good points. As long as it isn't hurting him!