Nice story so far. I really liked your explanations about magic in the earlier chapters.
As for the chapter, it was really good. I enjoyed Dumbledore's meddling. Of course, he better regret it also.
I would like to see Harry with keeping a grudge against wizarding world and not really caring about it. I think it could match with his mentality.As someone else mentioned he should exploit the fact he can't get expelled to the fullest. I would also like to see him continueing his muggle education. It shouldn't be hard, as it doesn't really need to be repeated much in the story.
Other than that, awaiting your next chapter.