Everyone has raised some great points. It goes to show that raising any kid is hard, those with a special need give us even more challenges!! A couple of things I have to add:

A happy child is the most important thing. But this doesn't mean that you leave things be and not advocate for intervention of some sort. We all gain confidence and self-esteem by achieving things that are challenging. To do something we have to work at, or didn't think we could do is really important. Many gifted children need a differentiated learning environment so that they have this opportunity. When school is really easy it can lead to boredom, disruptive behaviour and an inability to apply themselves to a task as others have mentioned. It can also destroy self-confidence because they never get that feeling of achievement and self-satisfaction.

Likewise, friendships and connections are vital. Everyone needs to feel like they belong. A gifted child in the wrong setting does not feel like they belong. DS is a classic example. He was walking and talking by 9 months, and had taught himself to read the alphabet and some words by the time DS2 was born (DS1 was 19 months). When DS1 was 10 months, the 14 - 16 month kids at day care got moved to the toddler room. They had been DS1's friends as he was verbally and socially at their level. He was devastated when they were moved and he was left with the babies. He used to just sit at the door to the toddler room all day and pine. When they had a vacancy in there - sick child etc - they would let him spend the day in there. From this time on, DS1 never "fit in". He would be great in a day care room when he was first moved up, and within 2 months he would monster child. Kindy was a horror year. He was so unhappy and had no friends. He would tell me that he didn't want to play with the other kids because they said and did silly things, and didn't want to do what he did. Prep was much the same, the only difference being a teacher who recognised that he needed to be in the more structured environment of year 1 and was in his element with older kids. He was able to do 4 hours a week in the year 1 classroom that he loved, but then he'd have to go back to prep and he'd be sad again. Finally the school relented and he was moved to year 1 during term 4 last year, and is now in year 2 this year. And what a difference it has made. We now have a very happy and confident child. And he has friends. It is amazing - I can't quite believe that this is the same child that we were having assessed for ASD and ADD and who was unhappy and unco-operative. Even the staff members at the school who were most against the grade skip have commented frequently about how much happier and confident he is and how we totally did the right thing (some days I really want to say "I told you so" ). I put the difference in him down to a few things - more challenge, more suitable environment etc, but mostly due to the fact that he has finally found a connection with the kids around him. He belongs. He is understood. He is not so different (still a little different but it's not so obvious or extreme).

So it is not always pushing or putting academics first to advocate for extension, or acceleration, or intervention of whatever sort is appropriate for your child. It is sometimes, maybe often, necessary. Just like any other special need, you need to meet the need.