Hmmm, I don't know if I necessarily think the reward is a great idea... ONLY BECAUSE some parents sometimes get madder then the kids when they find out their kid can't participate.  It really depends on your school district though.  I know teachers from Detroit that had parents come in and scream at them whenever their child was punished.  So I guess I have a slightly different perspective.

I think I made it through grade school fine b/c I was the youngest of 3 and for me it was never a big deal.  I never felt picked on, but also never felt like I picked on anyone.  I had my friends, life was good :)  Having older siblings go to the same school does make you feel like it's easier to fit in.