Nope, that's it. Gifted isn't about IQ according to both local districts; it is about high achievement. Kids with high IQs (like dd#2) but who underachieve don't qualify as gifted. Kids like dd#1 with both high IQ and high achievement are easily recognized. We do also know a lot of kids who are ided as gifted without any ability testing or who came out avg on group ability tests, but who get advanced scores on grade level tests.
our local district does this too. Teachers will "recommend" students who have high achievement but slightly above average ability testing for GT services. Parents are becoming more and more pushing about getting their high achievers into GT since the regular classroom materials are so slow moving thanks to NCLB. Most of the GT kids at our local school are high achievers. The school will take IQ testing into account but want achievement that is high as well.
