I am a 30 year old woman who has lived with eczema my whole life. I have 3 small boys who 2 of the 3 have eczema. All of these people telling you about the home business called melelluca, what a joke. The lady with the stuff in the lake, again a joke. I have been through all of that and I know exactly what you need to do.
There is something that you are doing that he is allergic to. In small children it is alot of the time milk, as it was for me and my little guy right now. If you are breastfeeding cut milk out of your diet completely. If he is on a milk based formula, try soy. I could be wrong, it may not be the milk, but in my experience it has caused lots of issues. My 6 year old had it as a baby horribly, and now it isn't so bad. My babay has always had milk issues and is now 14 months and he is getting better all of the time.
Also, I use Aveeno in the bath with no scent. When you get them out of the bath, you only have 2 minutes to lock in that moisture you just got from the bath. I take them straight downstairs and I lube them up with Aquaphor and I put them in their jammies and just let them be greasy, underneath the jammies. They don't like it much, but you lock that moisture in and the next morning it is like magic.
You have to be very careful with what you wash your clothes in. You may think what you are using is great, because it says its great, but that could be the problem. You should use Dreft without scent on his clothes. If that still irritates him try something else.
Try not to use steroid cream if you can help it, because it thins the skin. If you have spots that are cracking and bleeding, put the cream on right out of the bath first, make sure it is rubbed in good and then lather up the Aquaphor...(you can get it in the pharmacy section of your local store.) I buy it in big tubs for home and then I have a little tube for in the diaper bag.
One more thing...my baby is a digger too and he scratches himself all of the time. I keep his nails very short...I clip them 2 times a week, and that makes a huge difference in the damage he can do to his skin, then he doesn't crack and bleed nearly as bad as if they get long!
Good luck...if you have anymore questions, just email me through this site and I would love to keep trying to help! Just don't waste your time and money on things that people sell at home...I have tried them all and they start out like they may help, but in the end they are all the same....expensive and no good!