FWIW, DS5, in 1st grade who can read 3rd grade chapter books is also limited to which areas he can browse in the library. I don't like it either, but we're working on the situation.
Us too! Our DD kept bringing home these easy reader books on library day. So my DH asked the teacher if she could show her where the chapter books are - like Magic Tree House, etc. The teacher said she would, but that was in Sept.
We requested also to have 2-3rd grade books, at least, be put in her nightly reading bag...we'll see what happens.