My rottie sleeps in the bed with us. She takes up most of up, but we manage. When she's in heat though, she sleeps in her crate at night, or in the hallway. We live with the inlaws right now, and we have the third floor. There are two rooms up there, plus a hallway. So she's usually in the hall or the other room since they have wood flooring. We tried buying her the pad/diaper things, but she chews them right off...when we aren't looking of course. :)
moose has his own pillow that is right next to my side of the bed. he wont sleep with me but he has to have either my t-shirt or pajama pants to sleep on, he will drag them onto the pillow then plop down and fall asleep
My dog sleeps outside in his doghouse (which is kenneled in) during good weather. During bad weather he sleeps inside in his crate.
It probably depends on the type of dog, but I have done quite some research and believe that some dogs can develop dominance if allowed on furniture. See Link: http://www.leerburg.com/dominac2.htm
The following is a story that I heard recently. A guy who owned a Rottie use to sleep with him on his bed all the time. One night the dog bit and tore apart his owners lip while sleeping. The owner has been left with the scar for the rest of his life.
I think that you gyes are great and love your dogs very much and make your dogs living conditions as best as possible but just something to consider especially if your dog tends to show any kind of dominance.
I know my GSD has some dominance issues especially towards other dogs.
My baby, Pierre, usually sleeps on the bed with me. He has his own pillow that he loves to sleep on. He gets hot really easy, so, sometimes he'll get on the floor where it's cooler. During the wintertime, he sleeps under the covers at my feet or on his pillow.