Ditto what 'Neato said. Every last word.
I'm always skeptical of in-class differentiation. When it works, the good done can be undone the following year when the child is effectively held back. When it doesn't work, it's boredom and repetition for a whole year. I think it's a lousy policy. Better than nothing, but only sometimes, and then often not very much better than nothing. I want more!
The grouping sounds nice, but only if they actual do something with the groups. And, as 'Neato said, that all comes down to the teacher and the school.
It's worth a try if you think it's going to be a better solution than other solutions. Trust your gut.