We swaddled til 4 months. My co-worked swaddled their child til 6 months. Another swaddled but toga-style with one arm out for 7 months. If swaddling is working, no need to change it. We started loosening the swaddle at 3 months, then eventually took one arm out, then another, then a super loose swaddle, then nothing by 4 months. (We used the SwaddleMe by Kiddopotamus)
Around 4 months you can switch techniques to ones found in the book Healthy Sleep Habits, Happy Child by Marc Weissbluth. Since you mentioned crying it out (we did that with our son a 6 months and it took literally 3 days), I definitely recommend you read the book.
Get an unbreakable mirror and let your baby stare and examine himself. Your baby won't know that he is looking at himself, but will marvel at the lovely human being who is staring back at him and 'interacting' with him.
Also, get large soft blocks that have black/white patterns on them (stripes, checkerboards, etc.) and different textures to them. A newborn's eyesight is developing and the sharp contrast black/white patterns are visually stimulating to them. Hold a block in front of his face and slowly move it left to right and up and down - his eyes should begin to track the block. Also, take his hands and stroke them on the different textured fabrics.
Rattles and rings are great. You might need to curl baby's fingers around the rattle and then move his arm to shake it, but eventually he will shake the rattle on his own. What a great way to learn cause and effect! He will also become rather proud of himself when he learns how to shake the rattle all on his own, learning that he does have control over his enviroment.
Finally, attach toys to your baby carrier/car seat. Sure he may just stare at them for a while, but the sounds and colors are interesting to him and one day you'll be driving and he'll reach out to play with them.