OTGmom -
I really feel for you on this one, buttttttt it may be time to give an inch.
How many hours a week does this occupy?
Do you really want to convey the message that your DCs are too delicate to handle agemates and agemate leveled education for X hours a week?
If you feel strongly, then be sure to have DH 'volunteer' in the classrooms from time to time so that he can have a clear picture of what it is - exactly - that he is so interested in the kids getting.
You might also observe the classroom, and shop around various locations. AS in all things, having a teacher who 'gets' your kids can make a huge difference. In fact, DH might want to volunteer himself as a teacher.
We went through a lot of pain on this one - and my DS isn't the sort to suffer silently. If I remember your kids are more good-natured than mine. We kept trying different things, but if we made it to April that was a victory.
Love and More Love,
Grinity