While a child's relatively smaller size may be an issue for some in keeping an accelerated child from mingling with kids 3 years older, I would only see "no awareness of his surroundings" as the show-stopper. The transportation logistics also appear to present an impasse. Do the schools have technology to facilitate distance learning, such as participation in the middle-school-level math class via skype, etc?
In my observation and experience, DITD is very respectful of privacy and does not share info. Personally, I would feel confident sharing the full report with DITD for the DYS application.
