Thanks to everyone for their input. It helped me feel brave enough to push back against the school's request.
Our OT (based at a Peds hospital) said she was not enthusiastic about OT approaches to self regulation, that they were anecdotal, and that their safety was not determined. She told me there was now a professional society statement saying weighted vests had a potential for harm, for instance. I was really impressed by her evidence based approach. She also said some of the core stabilization activities she did with him were also used in sensory integration approaches, and they really didn't seem to impact his mental state one way or the other.
The school psychologist observed him and her first recommendation was that they arrange pull-puts for him to spend time "with a cognitive peer." So they will be doing one on one work with him and another kid. They even asked what content areas he would enjoy and said they were excited when I asked them to do science activities with him. The second recommendation was a social skills class, which looks like it will be a good fit for a verbal kid with DCD. I'm much happier with this approach!!!!