I think the problem is that, ever since Tinkerbell and others, fairies have been seen as overwhelmingly female and sparkly, especially for the chapter book age group. On the one hand I love subversions, and it's often the brave and different books that change the status quo, but otoh it would be a shame for a fun book not to reach the market you want simply because of the word 'fairy'. I might be tempted to call them pixies or something, especially if your editor is dead set against the idea, but obviously that's for you to decide. Also, I think you'll find the US market less forgiving of anomalies than the UK one, not more, but I could be wrong.
PS Anne - Artemis Fowl *is* fairies, though the main fairy character is female (if tough as old boots) and the main character or the book is obviously a human boy. It's also aimed at older children, whether that makes a difference am not sure. Kiersten White's books also feature male fairies, but of course they're YA and aimed at girls anyway.
Anyway interesting discussion!