i definitely agree with changing from cc to ls, it is hard to swallow, since you just spent that money on cc(not cheap either), it does not all have to be live though, i would not however add 4 inches of sand on top of the cc
and that is a classic example of why most of us do not want damsels, they do those things, but iif you want to keep them be sure to stock accordingly with fish that won't be a prob with them(unfortunately most are)
i can't help wiht the child factor, but like has already been said, it does take time, i cycled tanks in about 2 (or was it 2.5) weeks, i also cycled tanks that toook months, ls and lr definitley help out there(the quickest was wiht lr and ls), or shrimp can work too, and i am not sure why sandy said don't add shrimp(it may kill the damsel is why, or...) but one thing ot consider here, is that the damsel probably won't let the shrimp do it's job anyhow, more than likely he'll eat it or most of it before can do anything for your cycle
also, the wording you use, indicates that you may be battling the ammonia and trites, like with water changes, IMO(others do disagree, and some agree) water changes and things to reduce these often seem to prolong the cycle, so if you are adding thindgs to reducde them or doing water change,s i would stop, let it ride out it's course, things will come back down on their own
if you are considering the switch to sand, then this coudl help with your water quality in the long run, cc's are notorius for becomeing a problwem with water in the long run(not always, but very often), now some do use them still, but they do have the potential to become a problem later on
and yes you could make it a fowlr(fish only with live rock), it does not have to be a reef to have lr, lr is actually beneficial to most aquarium set ups, it adds food for the fish, shelter, decoration adn FILTRATION, just by being present, so using it is not a bad thing, as ling as the species you add are not too hard on it(most are not a problem, i mean like 99.9999999999999999% of them are NOT a problem), NOW, if you do later decide to go reef, it is fairly easy if you have the lr and a conservatively socked tank, so it would give more options later on as well
HTH