My supervisor is too involved, what should I do?
The first part (rewriting your text) is quite frequent. Believe it or not, most PhD students are terrible writers and though a good adviser would patiently go over the paper with a student pointing out the presentation flaws and asking the student to fix them himself (take my word for it, you do not want to get that list from the reviewer after the paper has been submitted), I know many people who lost their patience in that respect eons ago and other people who give up after 6 months of modifications and still do the job themselves.

So, the first question to ask is "How well was your paper written in the first place?". If not too well, there is a chance that you should be merely grateful for the revision and stop at there.

The second point is "throwing his ideas at you". Here the question is "How fast are you coming with workable ideas of your own?" Giving a PhD student the solution together with the problem is a terrible idea, insisting that the student do things your way and your way only is even more terrible, but giving him no suggestions after 6 months of no progress is also not good.  

The third question is whether the supervisor should be a co-author. Unfortunately, your post is somewhat self-contradictory on this point: compare


  My supervisor made some suggestions here and there, but nothing substantial.


with 


  he throws methodology and research design at me, before I have a chance to think about the topic myself and come to my own conclusions, and then encourages me to do it his way and not explore my way.


So was that particular paper done his way or your way? In the first case, IMHO, it is his choice whether he should become a co-author or not though you may still drop a hint that "the job market is tough and having a single author paper is a nearly must to land at the place you want to go to", in the second case it should be yours even if he rewrote the whole thing and you have all moral rights to insist on a single authorship if it is important to you. How exactly to do it without offending him I don't know (different people need different approaches), but judging from the tone of your post, you have had arguments with your adviser before, so you should know better than I what upsets him and what makes him cooperative. 

So, alas, the only things I can tell you are the usual "Look into the mirror and try to figure out what exactly you see there before making final judgements" and "Hold your ground but use your common sense and pay attention to the reaction to your words when insisting on something". I should confess that I often fail on both accounts myself, but I'm in a different position than you. Let's see if other people can come up with some better advice :-).