Homeschooling Diplomacy

I write this post both to ask the question and also in the hopes that in writing it, I'll be more sure of my own grasp on the big picture.

To get to it, for those of you who are homeschooling your kids, how do you discuss it with family and friends? And the corollary to that is, how do you explain it to your kids?

The reason I am asking is because up till now, our boys didn't even realize that we were doing something different. But they're now at the age to make the distinction and have latched on to the idea that fascinates them most: riding the big yellow bus, like their cousins do, and going to a school building with other kids taught by a teacher that's not Mom.

My wife and I have to deal delicately with this because we know why we're homeschooling: it's more efficient, better for the kids in terms of focus and attention, individual pace, family schedule, plus the ability for my wife and I to act as the filters for our children that we are called to be. But how do we explain this to a five year old without a.) giving him the impression that he's missing out on something fantastic, b.) running the risk that he looks down his nose at other kids who do go to school or c.)getting the impression that schools and everything associated with them are to be avoided?

How did any of you handle this discussion?