You definitely were not wrong. You shouldn't have needed to hide who you are. It's great that you got to go to prom with someone you loved.
Also congratulations on your baby. You're little girl is lucky to have two parents who love her. I can't tell you what is best for your family though. Maybe moving would be better. But unfortunately you're probably going to face people who don't understand and are going to discriminate against your family where ever you go. It could just be better to stay closer to your family so you have a stronger support net.
My dad was in the military so we moved bit while I was growing up. We lived in Vegas from when i was in 2nd grade till I was in 9th. My brother is two years older than me and when he went to go to his junior prom they announced that girls were allowed to wear tuxes but boys were not allowed to wear dresses. So my brother and some of his friends challenged that by all wearing dresses. They didn't face any resistance though.
At my high school though which was a preforming arts school and known to be the "gay" high school a student was kicked out because he liked to wear girl's clothes and he refused to "dress like a boy" and then one of my friends was kicked out for kissing his boyfriend. So it just goes to show that there is discrimination everywhere.