Tip of DS's Penis bleeding HELP!

I X-posted this in H&H, since I'm looking for healing advice.

It's almost been 2 weeks now, that the tip of DS's Penis is scabed. I went to go see a pediatrician last Thursday and she told me to stick him in a bath with some baking soda 1-2 times a day and put a barrier cream on him. I did both things (used Weleda diaper care for the barrier cream) and it looked like it was getting better, but it started bleeding again last night.
So I took him to the Doc again today (different Dr. though). She said that she wants me to buy a cortisone cream and put that on there, because it's mostly just really dry and that would help with that. She also gave me a bunch of antibiotic ointment to put on him, while telling me that she doesn't think I would need it and that it really doesn't look like an infection, but I should put it on DS for about 3 days. Ahhhhm, yeah.

So I need some advice on what to do. DS is seriously hurting. He freaks out when he has to go pee and holds it in way too long. I had him go under the shower, but even that makes him freak now. This isn't helping our potty learning either. I remember from being PP how much urin can sting on a bleeding wound.
I don't want to make it worse for him and I do want him to heal, but antibiotics and cortisone? Really?
I just started giving him Arnica C30 today. Would you do anything else? I've also been trying to let a lot of air on it, which has the downside of DS palying with his Penis though. (I don't mind that, just right now it's not helping the healing).
I've also been "bathing the tip of his Penis in a shot glass filled with breast milk. That really seems to sooth the pain for him for the moment. He always asks for it now too.
I'm just getting worried and was hoping somebody has some good advice here.

I'm also wondering how this could even happpen. Do you think that maybe the diapers are too tight? Or that I use cloth on him at night? DS2 is fine though and I wash their dipes together of course. Should I consider putting him (DS1, the one with the booboo) in a sposie for the night until he's healed?

I wish he was intact. I very briefly read somewhere that there are procedures to stretch the foreskin again. Should I consider something like that for DS? How does that work? Do you think it would help preventing things like the one he has right now?

I'm sorry this is so long, I just didn't want to leave anything out.
I'm pretty desperate to get some good advice.
Maybe somebody just knows a good and affordable Homeopath/Naturopath in my area? (Santa Clarita / Los Angeles)

Thanks everybody for reading this and I'm hoping somebody can help my poor DS. I'm feeling like I'm scarring him for life, in more than one way.