While I appreciate the Mamasource forum for the healthy exchange of information between mothers, I really wish that people could do it in a respectful way, without accusing people of being "ignorant and hypocritical." Anyone can find the "research" needed to promote their own agenda or opinion. As someone who has done research with a local university regarding to vaccinate or not to vaccinate, I realized that there is information out there to substantiate just about any view.
That being said, it is the consensus of the American Academy of Pediatrics (www.aap.org) that children should be given whole milk until they are at least 2 years old. If you have skinny kids like me, you might choose to keep them on whole milk longer. However, every child is different and of course some are lactose intolerant and some are allegrgic to milk--my brother was and it was hell for my parents growing up because they didn't have the products that they do now. And of course you have the choice to disregard the AAP's recommendations, but make sure your information comes from sources and organizations that have conducted legitimate studies and articles that are from peer-reviewed (very important) publications. Again, certain mainstream magazines are pushing their agenda and information is slanted.
Most grocery store brands no longer add hormones to their milk--you can check the labels for this. I think it is great to buy organic, but that is not finincially feasible for many. I go through 3-4 gallons of milk a week in my home, and at $7 a gallon for organic, you can see that is well over $100 a month just for milk! I do not buy organic--I buy whole milk for the kids and lowfat milk for me. Juice should definitely not be substitute as it is loaded with sugar. You could try soy milk, but if I were you I would get my doctor's opinion, see what all the moms say here, do some of your own research on-line, and then make a decision that is right for your child. The diabetes mentioned before has many, many, other factors involved other than milk.
AS far as the transistion goes, I used 1/2 formula and 1/2 milk in the bottle for a while and then gradually tapered down the formula until he was drinking only the milk.