He is easily reading harry potter books and doing triple digit addition and subtraction as well as writing full book reports for me on a daily basis simply because he loves to do it.
Welcome Mike!
First I want to congradulate you on getting your son in the habit of doing 'extra work' for you at his readiness level. This is key.
Second I want to encourage you to spend time in his classroom, in the classroom of the gifted program, and in the classroom of the grade ahead.
Then I want you to list all of your concerns - they are legitimate, and this is the battle you need to fight. Not 'he has to be in the gifted program' - but 'he is developing bad habits through bordom, AND he isn't developing good habits because he isn't being given the chance to develop good work ethic at school.'
Look at each subject and compare what your son's readiness level is to what is offered in the various classrooms.
If it were only that your son wasn't going to learn anything academically at school, but he loved going there and behaved well, and was developing intellectually at home, no problem for this year. But this doesn't sound like the situation.
When my son was in first grade, he saw an comercial on TV for Sylvan Learning Center, and said: Mom, that's me, I'm just not challenged enough. Call them.
I did call, but heard that their evaluation fee was about 300$ and said - no way, that's crazy expensive! I just didn't really believe him. I didn't have my 'gifted ears' back then - so the words just bounced off me!
At that time, all my son's behavior problems were in place and just getting more and more noticible at school. He was about to start down the path of refusing to do a drop of 'extra' work at home, not that we would have asked him to - we were 'nurturing' parents - not parents who hothoused! After a while, he was spending so much energy trying to control himself in school that he really was too worn out to do any work afterschool.
So now, after paying for private school for two years, I look back at what the fee for the tutoring center would have been and I laugh and laugh! How do you spell 'pitance?'
Now he's back in the public school(after a painful gradeskip) and we are paying for tutoring after school to keep him working at his readiness level. He 'gets' that he has to work at his readiness level one way or the other. Yesterday I had to punish him for reading a book about Chaos Theory instead of doing his homework. ((Proud Mamma tone!))
It really is sweeter to succeed after huge struggle, but if you can take a fork in the road and avoid the mess we created - please do so!