Hi, C.. Well, here's my scoop on the kind of classroom you're describing:
I was enrolled in a public school (I can't remember if it was K or 1st grade) where there were about 40+ kids in one enormous classroom, with 2 teachers and 1 aide. I was miserable. The teachers were, too. I was a very good little girl and a very good student, and the teachers were so overwhelmed with caring for such a huge sea of little kids that they singled out good students like me and made us sort of captains over the rest of our group, which in my case turned out to be kids with learning and behavioral problems. Instead of being allowed to be a carefree student, I was forced into an adult role of mini-teacher and monitor. It was always somewhat noisy in that room, because even the sound of 40+ kids writing with pencils or reading quietly to themselves, is massive. I hated that class, and was soooo glad when my parents had to move me to another school because my father switched jobs.
It's bad enough when public schools have to resort to such classroom nightmares because of lack of funding or whatever... but you are PAYING these people to not only stick your daughter into an overcrowded classroom! Furthermore, they are so thoughtless as to refuse to prevent a problem that a trained and degreed educator tried to warn them about! It's not a "black mark" if two 5-year-olds can't get along with each other for crying out loud. They should have listened to you or the PK teacher, but instead they decided to ignore the situation entirely.
Therefore, I believe these people do not deserve your money. I also believe they do not deserve the good reputation they seem to enjoy because they are obviously not at all concerned with the emotional and psychological well-being of these two children.
Yes, I believe you should take your daughter out of that school, and I believe you should not worry about whether or not another school is prestigious. At this stage in her life, your daughter needs to enjoy the process of learning in order to instill and develop her LOVE of learning; this is WAY more important to her well-being and to her future than the reputation of her kindergarten.
Give her a good foundation and then build her educational reputation a little later on. Otherwise, if you force her into an emotionally draining or damaging situation, she is going to associate the emotional turmoil with school and learning itself, and this may hinder her intellectually for a very, very long time.
Trust me -- it is VERY hard to lose a hatred of school and traditional learning once it starts. I had a great deal to overcome in order to get through school and then go on and get educated for a career. Ironically, I teach remedial college English, mostly to people who speak other native languages, but I also have to work hard to repair the damage that lousy schools have done to students who endured them.
Please, please, don't set your daughter up to hate school and rebel against learning. Let her be a happy little girl while she's learning.
Peace,
Syl