"So, I'm pushing on and trying to get a process going. The principal of the school thinks its a good idea for him to attend early or maybe just go into 1st grade early, his pychiatrist thinks it's a good idea to go early. But are they appeasing me by saying this?"
Given that both the principal (who should understand the school's environment) and the psychiatrist (who should understand the child in question) suggest entering at 4, I would weight the decision toward early entry and not worry about this notion of "losing" a year. By fall, he'll be at least four and a half, right? That was not out of the realm of children in my own K class (I entered at 4 and can't recall anything but excitement!).