gah, this decision is the bane of my life ATM.
My DD isn't 5 until May. June is the cutoff here, but similar system.
We had her assessed at the local private school and they were astounded with her. Her preschool teachers think it would be a mistake as socially she just wouldn't cope. Also I have an issue with the fact that they are holding kids back as early as January birthday so potentially there will be kids nearly 18months older than her.

Like you I was thrown when they asked if she could use a computer....uh no....isn't playing outside and being creative and exploring more important? Apparently not.