I am not certain that I know what PSR stands for but forgive me if I assume that it refers to the religious education program at the parish. I would assume that you are using a Catholic homeschooling curriculum and therefore most certainly are fully teaching and preparing your children to be members of the Catholic church and to live there faith accordingly. I believe that your priest has overstepped the boundaries of prudence in insisting that the children who play sports associated with the school league etc. must take the religious education classes. I do not think the two activities should be tied to one another. My question to your priest would then be concerning those children of the parish that do not play sports. It seems that he is sending a very negative message: "go to religious education classes and you can play on our team." This is certainly counterproductive to teaching a child that learning our faith is a gift in and of itself. However I do not want to pass judgment upon the situation without speaking to your priest or to the other parents.
I guess the question that you have to ask yourself is whether staying in this community is peaceful. No matter how many good friends you have made etc. the bottom line is your spiritual peace. Without peace we are truly unable to move forward. Think about that and see where you feel your spirit is moving you to go. Sometimes the Lord is calling us away from situations that have the potential to rob us of peace. He guides gently and with a sure hand. Pray about the issues and then determine where you feel your family can best find the peace that is so necessary on the journey.
Let us offer up our prayers for all those families that find themselves trapped in situations whereby they have no options for change. Let us pray that they are able to find peace through their total and complete trust in the Lord. If the Lord puts us in a place where there is no way that we can leave then it is through His will that we are there. Amen.