The way I see it Harry's abuse both in cannon and in this story must have been obvious to Dumbledore. While I could understand Dumbledore's reluctance to take Harry in, he had multiple options as many junctions in your story and in the original works to help Harry. To me, this makes Dumbledore complicit in child abuse. My vast distaste for child abuse makes it impossible for me to like or respect Dumbledore.

I guess that while I can understand Dumbledore's fears in taking Harry's guardianship on personally, he had many junctures where he could have helped. He could have kept Harry over the summer at school under any other teacher's guardianship. He could have protected the Weasely household, as they later did, and let Harry stay there. Harry could have stayed in Grimmwald Place indefinitely with Sirus or any other characters who'd more than willingly stay with Harry.

Another thing that bugs me with no responsibility Dumbledore is that as headmaster of a school he takes personal responsibility for the safety of hundreds of children for over half of the year. He trusts himself with their care, so how can he be so comfortable with one and utterly terrified of the other.

On a lighter note, I love this chapter and I love how you've been portraying Snape, Draco, and Harry. I hope the Snape sorts himself out and becomes a more sympathetic character again.