Phoenix and Lillamy, that the schools would do that to your DS's makes me sick and mad... Grrrrr. Kids should not be penalized for being bullied! I'm happy that I've found the school I found for my DS.
Escape, I don't have any experience with homeschooling, so... IMO, though, children live what they learn. So if your home environment can teach them self-confidence, manners, how to interact with and treat other people (which I have full confidence it could), then homeschooling would not be a negative on that aspect. I also think that homeschooling programs tend to include various social activities, but I'm not sure about that.
When DS got to preschool age, I did a lot of research into the local programs available. I ended up waivering between a Montessori program and Waldorf program. Then I went to an informational meeting at the local Waldorf school and fell in love. They teach the whole child; they recognize that young children learn through play, through movement, through art, not just sitting and reading/listening. They also stress social inclusion and the child's role in society. The class room schedules are all about rhythm, not schedules, it encompasses daily/weekly/seasonal rhythms.
I have to admit that what really, really closed the deal was looking through the kids lesson books (subject notebooks that they do their homework in). The first was an example of an 7-8th Grade lesson book for math. It looked like an art notebook but still contained information and a very strong base for stuff I worked on in high school and start of college (I was a math major). It wasn't just this book that looked like art and it wasn't even samples from just a few students; it was every notebook, every student, history, math, English, Russian, Spanish, science....
An additional bonus was that there are a lot of physical activities done outside, cross-country skiing, nature walks that include aspects of each subject, building a green house.... There is no chance that the school will be cutting those or charging the families for 'special' subjects that only last a week like my nephews' public school is doing, or where the kids only get 20-30 minutes outside regardless of the weather.
Music is also 'required' not an optional elective that families have to pay for. I went to an 8th Grade graduation ceremony and the kids are amazing on that front, too. Singing, each seemed to play at least 3, if not more instruments, and play each of them well. They blew me away with their talent and poise. The environment just seemed to nuture their specialties and personalities.
So I probably sound like a walking advertisement for Waldorf, but I love our school!
Best wishes on finding a program that works for your family!