I think it sounds good. I love the fact that a k-2 school has books up to grade 8 in the library
I too heard the "we have several advanced readers in the class" when DD started KG, but I was never given specifics about how it would be handled. At least at the end of grade one she was given French chapter books to take home to read, so that was something.
I think your DS could be with the right teacher if she's excited about group differentiating the clever kids. Time will tell, but so far it sounds good
