A.,
I have read all of the responses so far and many of them seem to be saying that a young child doesn't need that type of social interaction and many seem to think that daycare is a terrible idea altogether. I have to disagree with that thinking and please don't feel guilty for your choices.
My daughter is an only child (we are trying for one more but that has not been working so far). She was and can still be rather clingy and shy but daycare has really helped her in that respect. Not only interacting with other children but the adults as well. (Note: my husband and I both work full-time from necessity and I was not thrilled about sending her to daycare -- at first) She is 3.5 years old now and much more confident. Certainly, she is still a shy girl, but not nearly as much as before. I've watched her develop her social skills, and much more, at a much faster rate then her cousin who is 2 years older and stayed home with mom. Of course, each child develops at his/her own speed but her older cousin was a true terror between the ages of 2.5 - 4.5 or so!
Bottom line is, daycare can be a wonderful place for children when you find the right one. My daughter has been in two different centers due to a move this summer and she has adapted fairly quickly and painlessly to the new place. When you sign up with a daycare you need to make sure that they have a program in place and structured activities during the day. The daycare she is in now even ensures that they not only meet, but beat, the requirements for the local school districts! She learns new songs all the time, does art projects to bring home every week, eats her vegetables at lunch because all the other kids are doing it (nothing short of a miracle!), has "friends" that she sees every day, has learned how to stick up for herself when someone takes a toy or hits her (another miracle for my shy little one), is learning to write her name, gets prizes for being a good listener, etc., etc., etc.
Are there bad daycares - most certainly! I don't think I could keep my daughter in a place like you described above. I work in an office and don't find cell phones appropriate during work hours so I can't condone them in a daycare. I would talk to the director to try to make things better in the meantime and then look for an alternative place. I would be more then happy to share more of my experiences with you if you are interested and give you the names of the places that I have visited/my child actually attends. I have been very lucky to find the places that I did!
BTW, I am not knocking SAHM's or play groups, etc. but I believe if you find the right place for you/your child, a daycare can be a wonderful place for development and learning in a more structured setting.
Take Care,
K