These 3 options are choices you can make. If you leave him as is, then the data already entered on the profile would be enough.
Note however that since the family moved to Alberta around this time period, his baptism might be anywhere between Montréal and Alberta, and funeral same thing. So he might actually be real, statements of how many children a family has sometimes omit those who died in infancy or at birth. The one whose obit mentions siblings might not even have known of this boy (if he existed).
Merging away or recycling still leave the possibility open of his being re-created as child of these parents.