The interpretation I get from reading that MRI report is that there is extra bone growth, and it has grown across the disc space. The resulting growth has pushed the thecal sac and cord forward to the point where it is pushing in the sac and not the cord, but rather lying on it or up against it. Another poster explained it nicely imagining it as a hose with an sleeve etc. On either side of the disc space is a natural opening for the nerve root which comes off the spinal cord to exit into the body. The bony buildup is decreasing the area the nerve has to pass through freely. This is where your pins and needles are coming from.

That all being explained I will add my thoughts to it. First I AM NOT A DOCTOR! I do have a great understanding of all things spinal related due to my own injuries and enhanced education from that point til now. I have had multiple surgeries to my neck and I am a surgical candidate for my back, shoulders and hip. I have dealt with what you are dealing with right now.... The pins and needles are more of an annoyance than a pain. So that symptom alone wouldn't force you to consider a surgery. HOWEVER the cord is being effaced and it does move with motion. It is no different than anything else and can and will erode or start to have lesions from the contact. The way the body works it is sending out signals that there is an injury there and therefor the bone growth. A bone stimulator works in the same way. I didn't see any mention of disc disease. I had no choice in my first surgery. I had to have a follow up surgery and I am currently dealing with the bone growth, spurring, bars, osteophytes name it what ya will in ALL of my cervical Foraminen.
I would recommend asking for an EMG to see if there is evidence of nerve damage to your upper extremities and have a secondary consult with a neuro not associated with the practice you are dealing with now. Best of Luck!