I would say that it is slightly overboard. Then again I think that "Your Baby Can Read" is a little overboard as well. Parents these days are too concerned about having their children "get ahead" that they are not giving them time to be children AND it has never really been proven that this is actually a benefit for these children. They have found that the HeadStart program is only a benefit because the children are getting things (like being read to) that they are not getting at home. Chances are if the parents are hiring tutors for their 3-year-old they are already doing things like reading to them and practicing letters and numbers.
But as a parent in a not great school district I also want my child to be in a magnet school or a private school so I can definitely see where the draw would be to make sure that they stand out academically so that they are accepted. However, not at the price of my almost 3 year old not being able to be little still. He will have enough time for school without starting so early. He wants to go to school already and I'm going to (and already do to some extent) stress how important education is and work with him if he has trouble with anything.....hopefully that will be enough without having to go to extremes.