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I have little part of me that think hey 3rd grade at school might be different , but what if it's not .. why would i let him be suffer and lose my happy kid ?

Sounds like you are terribly conflicted. I usually approach behavior issues imagining this as something happening to another kid (and not my own). This gives me a chance to look at it more dispassionately. I then try and switch gears and see what does work (behavior wise) for my child.

Given the history of this school year, I would not be too hopeful about the next school year. Are there other schools available in your school district ? Do you think other districts in your county make work better ? If you still want to give it a try, you could see how he does for 3rd grade and pull out, if he does not adjust well.

At some point, if you see him in a school environment, you should facilitate giving him tools to be ready (not academically, but things like keeping hands to oneself, approaching the teacher to talk, or even just stay quiet till a moment is available to talk to the teacher). What has his current school offered him, in terms of support ? I also don't remember -- but does he have a 504 or an IEP ? Some schools have social skills classes -- they are for anyone who needs help (does not need a 504 or IEP) -- see if this is offered and if he can attend even if he ends up being homeschooled.