Chris,
Disclaimer: There are many variables at work here, but here is some general info from your description:
Your recovery and healing time are going to depend on several factors, some known and some unknown. I think it is wise to prolong surgical intervention unless circumstances deemed it an absolute necessity. The fact that your fracture is not significantly displaced is a good thing and most heal well without surgical intervention. My concern would be how thorough of an examination did you receive. If you went to an E.R. and got your dislocation reduced and a few general view X-rays, you probably need more info. Did they call in an orthopedic doc? Did they rule out damage to the "socket" of the scapula where the humeral head articulates? Rotator cuff damage?Secondary damage to surrounding ligament and muscle will also factor greatly in your recovery. Often it is best to wait before having an MRI, but it may be in your future. The fact that you sustained some nerve damage, I assume the axillary nerve, you may also have increased weakness in the shoulder musculature.
Given what is written on this thread, my advice would be a brief immobilization period (1-2 week at most) followed by follow-up to assure a non displaced fracture, no other associated injuries, and immediate rehabilitation consisting on active and assistive therapeutic exercises for the shoulder especially the posterior deltoid and the external rotators. Early mobilization is the key. You may find some "old school docs" that want to keep you immobilized for several weeks with no activity. This is warranted in some cases (very few), but usually ultra conservative. This doesn't mean you will not have to wear some sort of support when you are not doing therapy and sometimes fractures require specific positioning of the arm to prevent displacement. The rehabilitation is best accomplished with a physical therapist with a strong orthopedic background. Find out where your local baseball team gets it rehab and you will likely find lots of rehab specialist for shoulders. I personally would consider using electrical muscle stimulation as part of your rehab as it can assist in speeding your recovery. The exercise you will be given at first will seem very rudimentary and in a small range of motion, but they are meant to be that way to allow sufficient healing and stability before "testing" the mechanics of the joint. I have seen many cases of shoulder impingement in persons trying to rush their recovery.
If you give some more details I can be more specific. You have several wild cards in the mix, such as nerve damage, that may dictate recovery time. The end result and ultimate recovery will largely depend on the stability of the shoulder. If you sustained a rotator cuff tear and have sufficiently damaged ligaments you may have a chronic instability problem that may require surgical intervention. I am sure there are lots of guys out there with chronic instability that can share the horrors of it. Only time will answer this question. I assume you are a young guy with no history of shoulder problems; this will be in your favor.
Take your time and good luck, Keith