I agree with Dazy in that kids being pulled out is just the norm for kids these days. I think something like 3/4 of DS's class was getting pulled out for something when he was in K. I don't think it has the stigma it used to.
I was full grade skipped into 2nd and then pulled out to go up to 3rd for reading. This cooincided with math in my 2nd grade class. I was never sure whether I was supposed to do the math or not, which caused me great stress. Also, through some weird thing I cannot figure out, I ended up doing the same book in the 3rd grade as I had just finished. All in all, I ended up working through the same texts (A Pig Can Jig and A Fox Can Trot, if I remember correctly) 3 times in a 2 year period. Clearly, the school had orgnizational issues and the result, for me, was that being pulled out caused me stress and didn't actually give me any more challenging work to do.
So do make sure the pulling-out is well-planned and meaningful. Maybe you could ask the reading coach to remember what was stressful for her and then think of other ways to avoid the stress. Having reading be at the same time in both classes, for example.
