I think that if a child can learn more advanced techniques or knowledge in a good school, then he should be given the chance. But if he/she is already struggling in K1/K2, he should learn learn at a moderate pace, and thus not advisable to go to a "high pressure" school.
My personal observation is that Primary School education is all about foundation, going into a good school does not mean success and to a neighbourhood school does not mean lower chance of success. The crunch time will come when it is in A levels where rote learning and hard work may not gurantee success. My take is that success via the academic route is 50% nurture (school teachers, hard work…) and 50% talent (intelligence, good memory).
The only caveat is that it is critical that the child does not mix with bad company along the way and be influenced. It is important to give them a good role model and make sure that they mix with good company.
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RE: Competition among primary schools