So, hang on. Your son was sent to the Head "a few" times, and you sat around passively waiting to be told why (apart from hearing your ds's version of events) and when you heard nothing, let it lie??? Really?
He was accused of bullying yet "the other child was lying and apologised?" According to your ds. What actually happened? Ask the Head that, perhaps.
He is popular, yet other children have "set him up" and "are jealous of him."
"Disrespectful to teachers." I'm afraid that's a polite way of saying he's been bloody rude, despite what how say you've taught him.
The girls getting the lead parts in the show has "stirred things up between boys/girls." If your ds is good at acting and was therefore disappointed, it surely doesn't take Miss Marple to work out who might have been wielding the spoon.
"Erratic progress this year" is a statement of fact, and the reasons behind it (family illness) not necessarily relevant to post (although I have to say that I would have qualified such a statement). "Doing the bare minimum," regardless of whether his SAT results were OK, probably means they were unsure how much impact the family illness had, if he had a history of a poor work ethic anyway.
OP, I'm afraid it really is time you woke up and smelt the coffee re: your ds. You simply cannot expect to demand a re-written report, or to complain to the governors just because someone has written how they have found your ds to be. Otherwise reports become even more meaningless than they already are. It might be that the this teacher could have dressed it up a bit more tactfully, but the bottom line is the same: your ds has been behaving poorly recently. It is your responsibility to deal with it - with him, not the school.