Neutering won't fix either problem. Training might. Your dog is developing OCD with regards to the light chasing. You might can get a handle on it with obedience work, namely issuing commands that directly conflict with his ability to chase light (i.e. Sit, down, stay, kennel up, etc). Pick one that he knows and reliably performs, and insist that he perform it. Start slowly with just little flashes until he gets the hang of it. Then work up to longer flashes, moving flashes, and multiple flashes. If he cannot do this, you may need to talk to the vet about meds to treat it.
The humping is a dominance thing. He is challenging the kids for their place in the pack, and that needs stopped posthaste. Use a "nothing in life is free" approach to remind him of his position in the pack, and have the kids assist. They feed him, let him out and in, etc, and he must execute commands that they issue prior to receiving anything (food, water, outside time, toys, treats, even basic attention). No up on furniture at all for the first while, and after he ceases the dominance displays, by invitation only (maybe). If you don't curb the dominance displays, you could very well end up with a child getting bitten.