I think your meeting sounds very positive, JB.

The teacher seems to understand the situation and will work with you as much as the framework of the school allows, i.e. within the grade level. That is a tremendous accomplishment. It is tempting to search for the perfect solution within the school system to the extent that you lose sight of all of the great things that you have. A teacher that understands you son's academic needs is worth her weight in gold, IMHO. And if your DS is enjoying school, then that is the most important thing. You can always add some depth or new topics after school to keep the curiosity flowing. I think Kriston's idea of studying the history of math is brilliant! It is one way to give him a deeper understanding of numbers without creating boredom at school at a later date. I'm sure that there are other ways of adding enrichment to math at home that will keep the spark burning as well.
Your DS is very fortunate to have a supportive learning environment. It should be a great year!