Can you find another behaviorist in your area? It seems strange to me that he/she would just write the case off and recommend what to do without even seeing the dog in person??
I would try someone else, and if they recommend having him fixed, then maybe you can consider it. Dont' let this one person determine what you do — to me their opinion just is not valid without having seen the dog.
My only concern is that it sounds like he spends a lot of time alone — either in the bathroom during the day or his crate at night. That would piss me off too, lol.
Did you have Cesar before your new little girl? If she came into the picture and you started doting on her and your attention toward him became less (which is natural to happen with a new puppy in the house), then that could be why he is becoming more aggressive towards her. He sees her as a threat and is literally fighting for your attention/love. If all the sudden she comes in the house and now he's having to live in the bathroom and his crate all day, I think that might be why he's having behavior problems. This is just a guess though, because I don't know your whole story. I don't think any dog is a 'lost cause', I'm sure something can be done.
Good luck!
