If you put a very young child in with older children, even though bright, there's a good chance your child will perform closer to the bottom than the top of the class, and that's a confidence-killer.
Your child also might later meet up with a teacher who is no fun. A younger child probably can't handle Mr. or Ms. Killjoy as well as a more mature child. For instance: my ds, who is as much as 11 months younger than most of his classmates, tested into advanced math (96th percentile or something like that). But this year, he got Ms. Killjoy. He recognized trouble the very first week. We've taken him out of advanced math b/c we'd rather not discourage and burn him out in 4th grade. He is on the young side of all his peers, and this has shown in his immaturity and social/developmental delays every year since 5k.
Keiki's Makuahine (Keiki's Mom) 50, dh 50
Keiki: b. 2002 after 3 months bedrest
Natural conception following ZIFT/chem. pg
Olivia: b. 1999 d. 1999
28-week preemie, ptl cause unknown
Natural conception after 1 mc
ttc since 1998