T.S.
Well he may not be ready to drop naps altogether, but the length of naps does change over time, and napping at day care during the week is different than napping at home on the weekend (he probably gets more worn out at daycare.) When my K. started fighting their naps (varying between 2 and 3) I started laying down with them on my bed, we read a few short stories, and then I said "mommy's going to sleep now" and I turned over and "slept." Within minutes my little one was usually out (and sometimes, so was I!)
I see no reason to take his lovey away, especially since it's not a pacifier. But I would only pick it up once, he'll get the message pretty quick that you're not going back and forth.
Have you considered taking him out of the crib? My K. transitioned from the crib to a twin mattress on the floor at around 18 months. That way they could get out of bed and play if they woke up before I was ready to come get them (and yes, they were in a baby-proof bedroom with a gate and an audio monitor.) Or at age two a toddler bed would work too :)