Sorry, got all caught up in comic relief!
Flumpster, the school seems to be running scared, too afraid to learn about epipens properly so they are just becoming hysterical as you say.
We were told DSD had to carry her pens at 7 years old. We had all the same reservations that you did, she may get bullied into getting them out and showing them off (so to speak) loosing them, breaking them plus endangering herself which is what she was eventually driven too.
The teacher made her sit at the teachers desk incase a wasp flew in (we don't even know if she is allergic to wasps) she was told she had to walk around the playground with a dinner lady as lunch time, she had to sit alone or with a teacher and could only go on school trips if one of us went along too. She has always struggled to make friends and mix with other kids and this was just making the whole thing 100 times worse. The teacher admitted in front of us saying 'what on earth am I going to do if she has an attack - she knows what to do with the pens right?' This was in year 3.
After a very unsettled period of us making lots of suggestions she was terrified of the teacher and took to sitting under the desk trying to yam a pencil in her leg. In sheer anger so went to the loos and let the pen off into the wall which was when the teacher screamed at her that she would be in a special school. We removed her the very next day.
The next school was a million times better but only has 50 kids so they are set up for it. Her pens are held in the office and their school lunches are nut free. There are 3 kids in her class with nut allergies so finally she does not feel different all the time.
This is all irrelevant now as she was densitized to nuts on the Addenbrookes study this year. However, we are still careful as other allergens such as pollen or cats can affect her whole wellbeing.
So, I really feel for you and your DD. The school has a responsibility to help your DD grow up and intergrate exactly the same as any other child whether they have a milk allergy, nut allergy or no allergy at all. They need to calm right down and start acting like adults. Is there any epipen training that you can organise?