They try to release him across the town barrier to render him powerless but he reveals the switch, but do they believe (I sense another leap of faith)
As for trying to push Peter Pan over the town line, I fail to see how that would erase his memories, since neither PP nor Henry were ever cursed. Unless a new curse has been activated ….
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"That’s how you know you’ve really got a home. When you leave it, there’s this feeling that you can’t shake. You just miss it." Neal Cassidy