katt, i too was severely bullied as a child and it has a very long lasting impact on you. i'm still aware of it now, 20 years on.
i used to work in childcare, and i sincerely have to tell you that while i will never put my (future) kids in care full time, some kind of social interaction with other kids is very healthy. full time isn't ideal although i understand sometimes necessary. but some interaction is needed to make sure kids now how to handle life and the different situations. plus the example parents lead with (such as yours rachael good for you!!)