I'd be all for finding a new PT that will listen to your concerns. I could not stick with a guy that won't take my feedback about something causing more pain than it is relieving. I have had numerous PT cycles over the years and found most to be helpful. This therapist seems to not want your input from what you say in your posts. Your planned course sounds best to me, I'd also copy the insurance carrier so your side doesn't buried in the pile.
Good luck with getting some resolution, and some relief for the knee.
Bill