Ok I got it to work. I misunderstood how the interrupts worked. Got it now. The culprit was the if statement detecting if the state changed. Since the state was being maintained while sleep, it wasn't firing when I pushed the button. Thanks for everyones help!!

@Yveaux I already did! https://github.com/mysensors/Arduino/pull/396 janchrillesen created this issue in mysensors/Arduino closed Add yield() in sendACK #396