Egad, I wouldn't let him cry it out either. Everyone is different, that's just me. :)
With my first child, I liked "Secrets Of The Baby Whisperer- how to calm, connect, and communicate with your baby" by Tracy Hogg. As always, I use books as references... not to follow it to a "T." But, it gives good things to try and to learn from.
Each baby though, is different. There is no one "model" that will work for all babies. And lots of times, a baby changes so much each month and at each developmental change or growth spurt or teething phase... that sleep "patterns" are NOT STATIC in babies. It will ebb and flow and change... so a Parent must ebb and flow too.... if you want "sameness" in sleep pattern & behavior every night... it will lead to frustration, for the Parent.
It's good to encourage "self-soothing" in a baby... ie: pacifiers, a lovey, white noise, soft lulling music... etc. Some babies are more sensitive than others to stimuli...some like it to sleep, some require ABSOLUTE stillness and quiet to sleep.
Most of all, they need as you say, comfort, and regularity.... and routine. This enables them to "know" when it is time for sleep, and a "habit" will be developed. It takes time, and all babies have different learning curves. But find a "routine" pre-sleep and by sticking to it, there will be consistency. It helps a great deal in the future as they get older.
Main thing, find your "groove"...ie: what works for you/Hubby and baby... that brings on a peaceful sleep. After having my 2 kids... I found that the thing that helped most was having a consistent routine every night, pre-bed. Now when I say "bed time soon..." they know what it means, and we go about getting ready (same routine) and then I give them time to wind-down... then, go to bed. And there is less topsy-turvy to it all and the sleep "ordeal." LOL.
But really, ALL babies will cry and wake up during the night. THIS IS NORMAL. To expect a baby to sleep through the night is really just bringing on frustration for the Parent. They wake also during growth spurts because at these times they get hungrier and need more intake and need this feeding. It's okay.
For a baby "sleeping through the night" means sleeping at least 6 hours straight... so if he goes to bed at say 7:00p.m., and 6 hours later he wakes...that would be 1:00a.m.- (to us adults, that is waking up in the middle of the night), but for a baby it's NOT. Think about that.
Some babies DO GET very hungry during the night and need to feed. 6 hours is a long stretch to go. My son was like that and a voracious feeder... and I woke to nurse him on demand, as many times as needed if he was hungry during the night. I did that with my daughter as well.
Now the thing is... some Moms don't wake to nurse/feed their baby if they wake during the night and "train" them that way so they don't wake up. On the other hand, some Moms WILL wake and feed/nurse their baby and provide what comfort the baby needs even if they wake during the night. Knowing that in time, they grow out of it. EACH baby is different.
Yes, they will wake if the pacifier falls out. It's okay. When he gets older he will be able to put it back himself. For now, no. It's all developmental...it's not his fault. It's just inconvenient for the adult.
When he starts to teethe... this will cause another sleep issue and wakings. So be prepared for that one too....
Just go to him, put the pacifier back....soothe him or whatever manner in which you want to do it. You don't HAVE TO let him cry it out just because the Doctor told you to do that. It's your baby.
Also, what you may try is... instead of going to him at the drop of a pin when the pacifier drops out or he makes noise... stop, wait... and then, really listen to his noises... and see if you "really" need to go back in to him to put him back to sleep. MANY times, a baby will "stir" and make noises...but they are in between REM sleep transitions.. and will go back to sleep themselves, if not interrupted. This is NOT 'crying-it out' though... it's taking a deep breath first and then really seeing where your baby is at...
Comfort, soothe, and feed him during the night if that is what he needs. That is what I would do.
Your boy is doing fine.
All the best,
Susan