Definitely don't try to invent another course.
2 - Yes, but the question of paying/finding a permanent person to be present in the classroom will be the issue. I'm thinking about taping off a section of the classroom that the kids can't come in/teacher can't leave until the kids are gone. Masks until they are in their chair/place.
I would hesitate removing a student from the program permanently. There's going to be enough dropping by choice, and your class may be a reason that they are encouraged to keep going forward. They need to know you miss them, and they have a place. We see this from an adult perspective, but the truth is that it has more damaging implications for kids during their formative years.