It sounds very much like this baby is in pain. I'd be looking for something
in the neck and/or shoulder areas Even though this was a cesarean, the birth
could have been traumatic. (They used a vacuum extractor on my last cesarean
baby)
There's some things in your post that struck a familiar cord.
>>>Very restless sleeper - only sleeps 30 mins at a time, mostly in someone's
arms. Much wimpering, and very restless even when asleep....Mother is very
anxious about her child (had to resue child once after
it stopped breathing after inhaling chloral hydrate prescribed by
paed!!!). They are using a apnoea monitor and baby sleeps in their
bed. Wakes frequently, very restless, cries alot.<<
Have you ever heard that colicky mothers make for colicky babies?  A certain
percentage of the colic we see in our clinic is because of over anxious
mothers who just will not leave the baby alone to sleep, rest or are
constantly *picking at* the baby. It's almost like sleep deprivation for the
baby. A little gentle coaxing on parenting and calming down goes a long was
in these cases.
Hope this helps,
Marie Davis, RN,IBCLC