jaaydad, I appreciate that you are very disappointed and maybe that your mind is already made up. Are you in Tower Hamlets by any chance? I take it that you're not Bengali.
Whilst it's not necessarily fun being a minority, being in the type of school that you seem to be describing isn't necessarily a disaster. Have you actually been to visit it or spoken to parents who kids go there?
Truly, please don't treat Ofsted as though it's the word of God - what on earth does 'the school is not located within the community it serves' mean? What community is it located in, then?
If kids are starting in the early stage of learning English though achieving well, with good teaching it sounds like a reasonable school. I can appreciate your concerns about patchy differentiation for higher attainers, though if this has been flagged up as an action point, then the school will have to address it.
How do you know that the school doesn't celebrate Christmas?
If you're even willing to give it a chance, then go and visit it, more than once. Speak to the teachers and other parents. If not, then sorry but it's your prejudice rather than the school wherein lies the problem.