U.S Citizen but lives in Canada. Would my son still have opportunity for scholarships?

If he were to graduate from a Michigan high school, he’d be an in-state applicant, subject to in-state rules (much easier than for OOS/international applicants for public university admission + cheaper tuition rates). You could probably expect better college guidance for MI universities, especially if you choose a high school with a good student/college counselor ratio (especially if guidance counselors and college counselors are different people). However, you wouldn’t have much advantage if applying to universities outside of Michigan, where you’d be considered OOS if applying to public universities; perhaps the only advantage would be better advising for American universities, again only if you choose a high school with good college advising.

How big of a disruption are we talking about? Are you just accross the border (you could commute from MI to your current job). What about your spouse (and possibly, other children)?