It turns out it was a great decision. It means I can be sure Luke is not being manhandled by the director,verbally abused by teachers or the director, "taught" by various "teachers", put through 6 to 7 transitions a day, given food that makes him sick, and told how horrible he is.
Now he is told he is cute, loving, smart, and that he is kind. When he needs to make a different choice his nanny helps him make that choice without chaos or a mean spirit.
I have to be a better mother now. And that is okay too. I have to take charge of more educational lessons that daycare used to do. But that's okay. Because he is learning so much more about kindness and a playful spirit with his nanny.
In the end I hope this works out for the long haul because it is bringing me a much calmer little boy everyday when I pick him up. And he no longer has anxiety about being dropped off in the morning. I also feel trust and confidence in his whereabouts and do not feel the need to rush to him.