This also helps justify why Din goes to redeem himself in the Living Waters, despite choosing to remove his helmet for his son in Season 2. Since Din has been cast out by his tribe and no longer has his son, he is in a very lonely place, and is probably desperate to feel a sense of belonging again. He goes to redeem himself because he sees no other options to cure his loneliness, and falls back into old ways. Not long after he reunites with Grogu does he realize why he removed the helmet to begin with, hence why he swears allegiance to Bo-Katan, symbolizing his growth beyond his dogmatic upbringing.
There was nothing wrong with Din wanting to redeem himself after getting Grogu back IMO. Just because he made one exception doesn’t mean he’s not still deeply dedicated to his creed. His respect for The Way has been incredibly consistent and abandoning The Way makes him less interesting. It’s such a defining part of his character.
His arc was never about abandoning The Way. He becomes more accepting of other Mandalorians (like Bo-Katan), but he still remains loyal to The Way.
It never frames The Way as wrong either. Everyone who follows it does so willingly and there’s an easy out. If wearing your helmet all the time is such a big problem, then you can just take it off and get kicked out. Or leave. Religion doesn’t always need to be portrayed in a negative light. The Children of the Watch have always been portrayed in a positive light.
Still, I’m interested in seeing where your edit goes. It seems to be better structured.