Wow, I feel the exact opposite! I'm so glad that my daughter took the pacifier. It's important the babies learn how to self-soothe and a pacy is a route to that. The problem is more with the fact that it seems to still have become something that is soothing depending on your availability (to re-insert it) thereby defeating the psychological purpose.
Try one thing at a time. He long since should've left the swaddling need behind. And the 2nd thing would be to teach him how to re-insert his own pacy. At 8 MONTHS (not weeks right?) old, he's strong enough to even sit up on his own. He should have enough strength to at least give it a go to reach for the pacy on his own. I can't remember exactly when the pincer grasp comes in, but he's not too far from that skill stage. When he's awake and active, practice with him like it's a game. 1st for him to learn to grab it on his own, then how to have the dexterity to insert it on his own. He will "get it" eventually. And he will learn to thereby reach for it himself when he's woken up by loosing it. And even during the 'transition' period of that, if/when you go in to give it to him, don't just stick it in his mouth. Put it in his hand and guide his hand to his own mouth. He'll catch the drift.
But it will take patience, lack of sleep and persevearance for a few days once u move towards insisting on it at night. Please do so though, I'm concerned that if he's really 8 months along, he's not developing the appropriate emotional indepedence that he needs to be at by now. Good luck, N