My son has hated swaddling from day one. He hates having his hands held down as he likes to sleep with them up by his face, so I started him on sleep sacks and blankets right from the start. I just tuck it around and keep it below his armpits and he's just fine. He's 7 weeks now and still no issue. And I'm totally paranoid about SIDS too, but it's the only way I can keep him warm in this cold and get him to sleep comfortably.
I think as long as it's tucked around him and not up by his face you're ok. Just use your instinct you will know what's right for your baby.
I never saw a problem with having him in the blanket like a burrito. Some babies dislike swaddling.