Sounds like you've got a lot to think about. I don't have a whole lot to add right now, but I did want to mention that there are other ways to do EPGY within the school, without the school/state paying for it, if your school allows it. You can sign up with a homeschooling group (there is one run through a parent on this forum), and then if the school lets your DC, they can just sign on from school. If you sign up as a homeschooler, the parent would be the one in charge of things like contacting the EPGY group if necessary and such, rather than the school.

Also, the "PG" required for DYS isn't necessarily what one thinks of PG. When I first hopped onto this forum with questions, I was thinking my DS was possibly low HG, but he tested PG in achievement and IQ. He doesn't present like a prodigy or a PG kid, whatsoever. I think as more people get to know about levels of gifted, more kids will be identified in the PG range, but all those kids won't necessarily be the prodigies we read about in newspapers. So, I'm joining Grinity in her belief that you're in denial. when your 1st grader is working 3+ grades ahead, that is not just regular gifted.

And when you say that "matching kid and education is not an unusual problem," I would say that it may not seem unusual on this particular forum, because it leans HG/PG a lot of the time, and it is also full of people who are seeking help with problems. There are HG/PG kids who do just fine in regular classroom settings, and there parents have no need to seek out advice about classroom fit. I say, yes, your situation is an unusual problem.