I didn't see a word about defining gifted down or watering down the school experience of the "real" gifted students.
I don't think your super stimulative genius level classroom actually exists...
The whole point of this is that the teachers were not special teachers. The students were not special students. But the joint exercise they did was new and interesting. It is more about changing teachers' attitudes and skills than about stratifying resources and kids into gifted and not-gifted.
You might be saying that sea changes are impossible due to entrenched interests in education. I do think some reform there is very important. But I also think that as administrations and states see the benefits for teachers and students, they will start gravitating in this direction.