Generally, yes, you can still get your license - in fact, I would highly suggest that you do. Take your new license to your next court date and present it to the DA (if you do not have a lawyer). Since driving without a license is a misdemeanor, I highly suggest that you hire a lawyer, have them review your driving record and advise you on your license status, and then represent you in court on this charge.
It sounds like you were cited for reckless driving and no insurance. you should hire an attorney or ask for court appointed counsel as no insurance is a misdemeanor offense and RD is a serious traffic infraction.
If you have no record then you should qualify for a First Offender's program, which would require you to perform community service and pay some fees in exchange for a dismissal. Either hire a lawyer or ask for a court appointed lawyer on your first court date.
If you are considered a Level 5 offender under the DWI laws (the least serious) then you are looking at 24 hours of community service (or 24 hours in jail), a suspended driver license for 12 months, costs and fines, and increased insurance rates in the future (not to mention having a criminal record and some public humiliation).
Definitely seek a qualified attorney to handle this matter to see if there is some way to get the charges dismissed (through a suppression hearing or trial)....
His withdrawal from the case is subject to court approval. With it being close to trial, the Judge may not let him out. However, since you have not fully paid for the representation, your lawyer may argue financial hardship if he was to proceed without full payment. A trial takes a lot of work and time. If the judge lets him out of the case, ask for a public defender and see if you can get a continuance.