There are a lot of good suggestions here but in my opinion fading is not an option when you have children in the org. Your experience is the exact reason why! If you make the witness world the normal world than that is what will be their norm! I was just watching the kaleb video the other day and realized that the guilt trips and intimidation start at a young age. Thats why a lot of born ins can never really leave and have constant feelings of guilt. You need to break the cycle.
Getting your child out of this organization is more important that ANY relationship you may lose in the process. Give your child a normal childhood. You will not regret it. Also make sure you involve your child in experiences and opportunities that show him/her how much life has to offer, not just the field service and endless meetings and assemblies. After two years of school sports, birthdays, girl/boy scouts and other normal activities you can kiss the idea of them becoming a witness goodbye.
Tailor this advise to your situation and it will work.
Good luck in whatever path you take.
pbrow