you can get the hood fade here but it ain't cheap.

Be sure to get all the dewaxer off. Follow the wipe down with a very clean clothand keep changing it. The dewaxers will leave a residue if not completely removed and the new paint will lift. Be sure to tell your guy everything you put on it to clean it.

The clear coat is really hard and normally you can sand the crap out of it. Body shops love the new tech paints because they shoot even and dry fast. In theory he can paint your hood and have it ready for ya in a few hours. You say he has done work for you before so he might have your paint on hand. Paints are very expensive now so he may have kept some if you are a good customer. My body guy is a friend and he keeps my black on hand knowing he will see me each spring.
Like the others I think he will sand down the hood and shoot it again. As for the decal I imagine he is avoiding it like the plague. If he shoots the clear coat on it the thing will dry up and crack /curl. Remember its a decal which in all likelyhood is vinyl based. This means it has oil in its chemical makeup. The clear coat drying adgents would suck this up like a DQ Blizzard & a 6 year old.
If you are going to put wax on it I would put a Carnuba based wax on it because it puts the oils back in. Likewise it is good for clear coat paint. Stay away from silicone based wax for clear coat paint.
Funny as it may sound Armour All or a like product is great for your decal and as well as any rubber / vinyl products. (Jeep guys try this on your soft top vinyl windows ) They put the oils back into the composition. Problem is more with applying them because it leaves that crappy greasy mark on your paint if ya get some on it.
WHEW, man my fingers are out of breath. Hope this helps answer some of yer questions.
   

Well that is right where it is peeling,right on the fade about 6" down from base of windshield.I'm starting to not like this very much.If I leave it alone I can call it pitena right?(It's old/bad paint on other cars)but on a Vette it's pitena.I think I got that from the NCRS guys!!!

Was the hood or car ever re-cleared before?   I have seen this happen in cases like this. And as finicky as paints are, different brands of clear may not adhere well to each other, even with proper prep (I used to work in my dad's body shop as a kid). If the base coat is directly under the clear that is peeling, you will get a wavy finish no matter how much work they put into feathering.

Hey Paul is there any old Indian tricks to re-sticking the decal if its starting to come up? I think that is what Gator's main problem will be. Your help might give hime some pointed questions for his body shop dude. I don't know of any good tricks here. My advice would be to start hunting down the best price on the decal.

I might see if he can paint the fade.I've seen this done before and it turned out great.I guess you would have to be good a feathering the paint.He's got some of the brown paint left over after redoing my tailight coves.

Decal tricks - Heat gun - not too close!!!!!!!!!!!!!!!!!!!!!!!!!!.......softens the adhesive

Well you can't just buy the hood decal.The whole pkg.is somewhere around $2,500.

Check out the link above from rearn2go72 - Hood decal is individually priced...