But IMO, kids are little for such a short time, I think we should keep them little for as long as it's possible, and by keeping them home, not going to formal school institutions at 4 1/2 or just 5 years old, they remain that little bit more innocent and 'baby' for a little bit longer. A year is nothing in the grand scheme of their lives, but at this time of their lives (when they are 4 and 5) it could be everything.
This is exactly what I am thinking. (As well as agreeing with the rest of your excellent post! )
I was frustrated when I realised that DD2 was 10 days past the cut off date and was already showing all the signs of being ready for the next stage. She has the whole second child thing of rushing to keep up/catch up and seems to be so much more advanced than DD1 was at her age. However, when I thought about it, I realised that although it was a frustrating thought that I would have another whole year trying to find care for her or being limited by not being back in the workforce, it was a blessing in disguise as I had more time for her to develop a wider range of skills she will need through out life. I keep thinking that in the scheme of things, this is such a short time of her/our life and such an important one. I am glad that I am able to leave the hurry for school for later and give her a chance to leap into it with both feet and a confident spirit later.

Whsiwyg - I think you make a very good point about the rock and the hard place we find ourselves in with regards to the costs of care and being out of the work force. Our system/society is not really well set up to support young families and early education. Kathy also made the point on the podcast, that the cost of childcare is prohibitive to many families and is part of the decision to send children to school. I feel really lucky that I am able to be out of the workforce and be open to DD2 starting school later - I know not everyone has that luxury of choice.

Astrid - I'm so glad that podcast helped confirm your choice. It is such a difficult decision, even when it is an easy one and can leave you with such conflicting thoughts. I'm sorry though that you have negative feedback from others. I think sometimes people reflect their own sensitivities regarding the issue on to you when it comes to school age readiness, as if your decision to hold back says something about their decision to send their child. Really, it is up to each individual and their own family circumstances. I just think that information like this from Kathy is imperative when making such decisions.