"Rug time" is either reading or calendar, in both cases a direct academic activity. The kids are probably distracted by the social implications or being picked or not during this time, so I expect that the academic goals of the curriculum are not being met as they would if this social "learning" wasn't expected during the rug time. It's for this reason that I disagree with the teacher. Otherwise, these "life lessons" are appropriate for the age group. I have seen kids able to pick a buddy to go with them to the nurse (if hurt) or to deliver notes to the office (one of the rotating class jobs). In these situations, the kids are out of the classroom, and the distraction to the curriculum is minimized.
I anticipate that there will be many situations like this during the first years of school. Maybe these are good lessons, I don't know for sure. I was always bothered by the bulletin board in class that shows who got a tooth out and who didn't... like a kid has control over that?!? What's to stop someone from feeling inadequate because they still have their "baby teeth"? It's akin to the way girls compare who is wearing a bra in the 5th grade and not... teachers don't put THAT on bulletin boards, do they? heehee