I too thought I needed to stop a while ago & it just didn't work, he had found his hands but still doesn't know exactly how they are working - so he'd pull out his dummy then wave it about crying.
Erin this is EXACTLY what my DS does!!! So frustrating. I stopped wrapping for about a month but was finding myself putting him to sleep by holding his arms and legs still under the blanket (took about 10 minutes) until he nodded off - otherwise he'd remove dummy and become upset as he wanted it back. So, in effect, I was acting as a wrap - and he wouldn't go back to sleep after 1 sleep cycle. So we have recently recturned to the wrap (arms only) over the Grobag. Back to 2 hour day sleeps - bliss. Interestingly, we don't wrap for overnight sleeps (after dreamfeed) and he does not wake up. Go figure.