Tooth Trauma

Being the hygienist that I am, I worry a lot about my kids' teeth. About 2 weeks ago, Cole fell face first on our tile. When we picked him up, his nose was bleeding and he was cringing in pain. I thought he just hurt his nose really bad. We gave him some Tylenol and he finally calmed down about 20 minutes later. It turns out that the fall caused more damage than I had thought. The next day we saw this:
So naturally, I panic. It is hard to tell from these pictures, but the damaged tooth now sits higher than the one next to it and it is slightly rotated. There is also that strange whitish ring around the tooth. What in the world is this?? It does not brush off; it's hard, and stuck on there. I showed these pictures to the dentist I work for and he had a couple theories about it. He finally just told me to go see a pedodontist (a denist that specializes in kids only). The pedodontist was surprised as well. When he looked in Cole's mouth, the first thing he said was, "Wow, that's interesting." He concluded that the white part around the tooth is keratinzed tissue (hardened, white tissue). It is how the tooth and tissue are healing from the trauma. There is a chance an abscess could form later. In that case, we would have to do a baby root canal. The pedodonist also said that there's a chance he could lose that tooth. But for now, we're just supposed to keep our eye on it.