I think the reading level thing is a way to keep the school systems accross the contry on the same page about what is accomplished in each grade. I find that my son is far more interested in reading books that are "too advanced" for him because they actually have a plot. Yes he requires more help but he also pushes himself a little harder. I also catch him reading words that he can't "read" based on the context of the sentence. If I recall that is a more advanced, "upper level" reading skill. DS just turned 7 and he reads MTH books with no problems and things geared toward 4th or 5th graders with help.