Hmmm, I wouldn't really be happy with my DD spending so much time with the pre preps, (they're too big!) and that does seem like an awful lot of free play. The teachers shouldn't be letting bullying happen. My DD is like yours and would probably not go back...

My CC has lots of structure, activity tables, stories etc. They do have free play too, but not THAT long and they would stop the hitting before it began - I really like the way its handled there.

Keep your eyes open for alternatives and see how this pans out....

ETA - If you are paying for childcare you want to get what you pay for - it sounds more like 'childminding'. Kids get lots of free play at home, and relish structure in any situation. Go with your gut.