My brother had a librarian like that in school; she was horrified that he didn't want to read all the kiddie books in first grade, and swore to my mom that he was missing out on lots of great literature. He called mom when his own son was 3 or 4 years old and asked if they could look up that librarian and reassure her that he had finally gotten around to Dr. Seuss and the other "great literature" he had missed when he was a kid!
I think the whole argument is ludicrous. If they want to know what a kid can read, they should open the book and have him try it. If he can read it, he should be allowed to -- assuming there is no "content" issue with the parents. How hard is that?