Thanks for your responses.
I often go from denial to acceptance and back to denial within a few minutes.

But the moment I verbalize the fact that kid is suppose to be in K this year but can do some Gr.2 work -- then I'm back to acceptance. Then I go back to ... nah, lots of kids can do this but have been unmeasured or ignored by teachers who have too many kids to deal with (mostly those who don't meet the grade). If you're kid can do more, then what else do they need to help your kid with.
Oh well ... It is great to read other parents and their viewpoints too.
Thanks.