It starts WAY before gemorah. Kids are starting to learn to read in 4 year old programs. Most yeshivos / Bais Yaakovs in the US are expecting kids to be at least beginning to read in 2 languages BEFORE starting first grade. Many kids are fine like this — but many are not.
The irony of it is that many studies have shown that starting academic skills at a younger age does not in any way improve the student’s long term progress. Kids who are taught to read at a slightly older age simply learn the skill faster. And by focusing on these skills at a younger and younger age, we are loosing out on time that could be spent teaching and working on the age appropriate social and readiness skills that are such a critical foundation for future success.
My personal hunch is that most educators would agree that this is an issue, but will not change anything for fear that it would harm the school’s image. Parent’s must take a part of the blame for wanted their kids to be in the “best” school, and by judging that according to which school is winning the academic race.
It’s like the homework conundrum — parents complain that kids have too much homework, too complex assignments, etc., but if a teacher doesn’t give homework (particularly in older grades), parents complain that the teacher isn’t teaching anything!