Go with your instinct. Do not promote relationships at that age. It is bad enough when they get into highschool. Studies show that children do not mature enough to make good decisions until well into their late teens and twenties. The part of their brain responsible for decision making doesn't develop fully until then. I would continue to push the group situations and forbid any one-on-one dating or time alone.
I worked in a middle school for nine years and there wasn't a single year that went by that at least one little girl didn't end up pregnant. It is a different world we live in these days. Kids are exposed to much more graphic sexual content on tv, in movies, and in their music than we were. They are talking about things we didn't even know about at 10. They are often doing things we didn't do until we were in college.
Your instincts are right on que. Trust them no matter what others in the community are doing. Honestly, in my opinion, the reason we have so much teen promiscuity and pregnancy and sexually transmitted diseases is because parents today are far to lenient. This you have to trust your kids business has gone too far. I think it is just a form of laziness because parents today are just too busy to keep up with their children.