Stick with the wrap. Sometimes you just have to go with what works, even if it isn't what you thought you would do!
I know how frustrating it is when they are sleeping well and suddenly it all changes. My DD slept brilliantly until 4 months and then started waking up all the time. It peaked at about 6-7 months, with her waking up every hour. We were all exhausted and had no idea what to do. Then when she turned 8 months old, we went overseas and didn't have a travel cot so she slept in between me and DH in our bed. She suddenly started sleeping through the night and has been that way ever since! She is now 12 months and DH is angling to move her back out of our bed, but I really don't want to rock the boat!