We had the same approach NQC. The school claimed that they were looking for academic potential, not for kids who could read - wto which we thught "great, that's what he's going to school for". But at the second "play" session (they do two, in case a kid has an off day), we saw other parents cramming their kids with little reading books. We though "oh oh - our ds know the letter M, as that's the first letter of his name - but that's it". He was only 4 and 4 months at the time.
As it was, he wasn't accepted - but we actaully got him into the school of our choice, which we found out belatedly (otherwise we wouldn't have put him through the private school admissions procedure) was actaully our catchment school.
He now 6, in Primary 2 and do brilliantly in numbers and average for reading. He was in the top group for reading, but it has been agreed that developmentally, he is just not there yet - but will do eventually.
We're actually glad he didn't get accpeted- I don't beleieve that he would have then got the extra support that our (state) school has given him, in an effort to keep in the top group, and the continued support now that he is in the "middle" group (becasue actaully he is between group, so now needs stretching, as opposed to before, when he was struggling) - and the pressure would have been couter productive.