Candy,

After reading your post , I think you should go with your
instincts on this. You know this pup's potential better than
anyone else. I don't think he should stay with these people.
Not because they are 'bad' people, but because it does not
seem from your post that things are working out to well for
the family or the pup. If there is a new baby coming, the dog
just might get more overlooked in the shuffle. I'd take him
back where you can work with him.( Think I'd try to place
him somewhere else). Just my 2 cents worth. Please just
trust your 'gut' feelings on this. Liz & Buddy.