Up until about 1 - 2 mths ago we also stopped wrapping DD for the exact same reasons as you mentioned M2S....DD is now 11mths.

I now just put her in the cot, give her a dummy and put on her Winnie the Pooh baby music / light show thing and I leave the room. This thing reflects shapes onto the ceiling - but isn't very bright and colourful so as to not stimulate her...and by the time the thing stops (ten minutes) DD is asleep...Not to often will I have to play the thing twice for her...

I got the idea about the music / light thing from a friend who swore by it - and she had three DS's....I know it won't work for all - but when DD was younger she was a horror to put to sleep - so I would try ANYTHING!!! And this did the trick!