Austin, I think they also like to keep the bright ones at "grade level" to boost their scores. Math Rocks is the only acceleration they do and that starts in 4th grade and. You have to commit to competing which I don't think should be a requirement to be accelerated.
I agree that they may think this way. It is small minded, though. They would get even higher scores if they accelerated.
Math Rocks is pretty good. Competing is not so bad. I went to college with one of the proteges of a similar program from Eastern Europe who was very mature mathematically. This person was very shy and they said that competing helped to remove that shyness.
The college I went to stressed the Socratic Method to teach math for math majors, which requires everyone to publicly do problems and comment on them. You cannot help but get excited about the problems and everyone feeds on it.
But I agree that it should not be a requirement. An SM based advanced class with differentiation should be the solution.
You can still join the math circle and go to the lectures, though.