Balanitis can be due to several skin diseases.
The diagnosis can be indeterminate even if you choose to submit to a biopsy.
Steroid atrophy can be a long term problem
which you will have to deal with. I would guess you have
tried other bland emollients such as aquaphor or
petrolatum. Protopic has been used off label and long
term for years in clinical practice. A second opinion
from the dermatologist with a practice interest in genital skin
problems is a good option. Keep area well lubricated and minimize friction when you are sexually active.