What worries me the most is 'will you be able to hand pick next years teacher.' For lots of kids a great teacher really can make the year sing. Especially if the school will 'pepper' the classroom with the closest to peer possible.
I'm totally not buying the 'no gifted program' and think that if you keep going up the chain of command, that someone-somewhere will let her in. Will that be enough if you get a 'mere mortal' teacher next year? Possibly not. The best way to know is to sit in and observe what is going on in the gifted classrooms for English and Math.
Make sure to read through
http://www.accelerationinstitute.org/Nation_Deceived/Get_Report.aspxand see if you still feel that physical size is so important to grade placement. It sounds like your DD really thrives in interesting classrooms, so to my ear, the challenge is to get her into interesting classrooms in a variety of ways: Possible skip, gifted classes, outstanding teachers, groups peers - use whatever materials you have on hand.
In my experience the difference between a good teacher and a great teacher is huge for an HG kid, particularly one who has had trouble in the past being compliant with the school expectations. It may be that she can't or it may be that she isn't motivated for very good reasons, but like my son, she needs the environment to meet her a little more than half way.
Love and More Love,
Grinity