I agree, it's frustrating to try to communicate when your little and even more frustrating when you have hearing issues. Have you tried teaching him to sign? It does wonders and is easy to teach to little ones. I don't know what to tell you about the hearing aid... if it's a good idea or not, does it hurt him to have it in his ear or does he just not like it being there?
I know this is not the same thing but give it a try. Dillan was 9 months old and he would not keep his glasses on man I was wondering if he ever would. my mom suggested that i put him in front of the TV without his glasses on. then after a few moments put them om so he can SEE the difference. maybe start to talk to him then slip his hearing aides on and continue to talk to him. I don't know we had to do this several times with Dillan
I am guessing that maybe his behavior is due to his hearing loss and his speech issues. I know Chris my 4 year old has speech issues and when people can't understand him, boy oh boy je gets really frustruated and upset. he doesn't understand why no one can understand him
I personally think that what you are doing as far as punisment is going that you are fine and just keep reinforcing it.
good luck to you
michelle