My sister has dyslexia. She was in second grade (I think) when her teachers told my mother that she would never read and put her in a special ed class to watch TV all day. Mom promptly took her out and homeschooled her until she was in 5th grade and was ready to be mainstreamed.
I was homeschooled for a few years as a teen, and it was a relief from the social environment of public school. I didn't enjoy the PS system. The kids were very corrupted and the teachers tried to discourage me from expressing my religion, which I let them know was a violation of my rights. I ended up winning the little skirmish, but I was so depressed about the system and didn't have enough home-supervision with homework to excel in that environment, so I was very relieved to finally start homeschooling.
My kids are all homeschooled and so far I have an apparently dyslexic kid who is thriving and one grade ahead of her peers, and another who is 8 years old, but she is in 4th grade and doing very well. She's read practically all the Nancy Drew books, Pony Pal books, Hardy Boys, and all the Harry potter books plus a few others. She is starting to learn to take charge of some of her learning (with supervision, of course) and I am very proud of her progress. I also have a little boy who acts really eager for any chance to use his school books. He's 5 but already in first grade.
As far as socialization, our kids do very well playing with each other and other children their age. They also know how to talk to adults in a respectful, polite and engaging manner, and they are very good with my babies.
I certainly have no complaints about how homeschooling has served my family.