J.S.
Hi!,
Yep, my son loved his too. At 3.5, I started by poking a hole in the end of it. Then I snipped just a tiny hole, then slowly, I snipped a little more and a little more. I would tell him that it was getting old and he was too big a boy to have new ones. I told him he could keep this one as long as it stayed safe, but I could not buy new ones. He was older though. At 2.5, you may want to wait until three. The teeth concern is already too late (which mine were both fine even with very late paci's). The battle might be easier when they are a little more able to understand "old".
Eventually, it got too short to keep in his teeth and he said "Just throw it away, it is too small to hold onto anymore". It took about 6 months, but it was easy without tears and battle.
good luck, J.