It's exciting to come across other parents of boy gymnasts! We live in France, and my ds started rec gym (1.5hrs/week) in sept 2012 at the age of 7, 3 months before his 8th birthday. After a few weeks he was asked to come twice a week, a total of 4 hours, then a few months later to come 3 times per week, total of 6 hours. He did his first competition about 5 months after he started. In France you don't compete by levels, but by age, and unfortunately for him his December birthday put him in the 9 year group at the age of 8 (he still isn't 9 and will be competing as a 10 year old in a couple of weeks!). At the time he did a handstand to controlled forward roll, pancake, round-off and backwards-roll to a handstand on floor. He did compete on the other apparatuses but I am not familiar with the technical terms for what he did, but after 5 months he was limited in what he could do. He then got asked to go into the 'sport-study' program here, which is where gymnasts go to a school with which the gym has an arrangement where the coach collects the gymnasts from school early and they train for 3 hours 4 days a week, and then 2 hours on the 5th school day. As far as I can tell the girls train about the same amount of time as the boys, and training is dictated by age rather then level (for the children in the sport-study progam).
The competing by age thing is really hard - it is a bit like international competitions, in that you can enter with any skills, then there is a maximum score for a particular skill, so the harder the routine the more potential points you have. So he has a double disadvantage, being significantly younger and with less advanced skills. I am just hoping that he will be able to understand why he will not place in competitions for some time to come, and have the patience to keep working away at the skills in spite of this. If he does, it will be a great life lesson that will have benefits outside gymnastics too.