It's just ludicrous. You are absolutely right to be outraged. And you are right about finding 18 ways to get out of the box.

"He just needs to deal with not learning anything new; after all, he will have to deal with being bored when he goes out and gets a job!" was one of the administration comments (during an IEP meeting for a 5 year old) that lead to homeschooling for us.

I knew that, regardless of what the teacher did or didn't do, my boy would find a way to be interested in something in class, but that the ways he would come up with on his own to be interested probably wouldn't be ones the school would approve of. I knew that homeschooling would be easier than spending my life in the principal's office either continually advocating to get them to do the right thing or else continually dealing with the fallout from DS finding some way to make the classroom "interesting".