So, the final update to all of this:
The pre-game meeting before the final game of the past session went surprisingly well. Everything was laid in front of Luke - as well as everyone else - about why we were there to play and what we wanted to accomplish. The game that followed was probably the most fun we have had playing in months. We didn't win, but we played well, and we had fun.
James agreed to take over as captain. I will just be there as a player, although I will fill in when he's away. Which isn't a problem at all!
It all worked out really well, and I'm excited about next season!