Thank you everyone for your opinions and constructive criticisms and I agree with most of you, I'm truly overwhelmed by the amount of responses we received. I can't possibly respond to everyone's post but I keep re-reading them for encouragement or ideas on what we can fix.
I agree the pups are bored and need more attention. Hubby & I are trying some different ideas. I like the suggestion that we use the bathroom instead of the kitchen, but our kitchen is a high traffic area and right next to the living room where we spend our evenings.
I'm also going to use the suggestion that we hide treats throughout the kitchen to help keep them occupied. Belle has a purple ball that when you roll it around it drops treats, its her favorite toy. She's really good at getting them out so they go really quickly and can't keep her attention all day. Baloo has gotten smarter he lets her work for the treats while he picks up whatever she misses. We do have another toy they both like but they can only play with it while supervised, its a plush tree trunk with 3 holes in it where you insert the 3 squirrels, the idea is for the dog to get the squirrels out of the tree trunk. Or you can put treats in there. They have to be supervised because they get their heads stuck in the holes trying to get to the squirrels. It's really comical; Belle will be fine and run around with it on her head but Baloo gets really scared and starts to run around like crazy.
And yes Margot we got a second yorkie to help Baloo with his separation anxiety. And it did work, he isn't super sad when we leave. And yes we knew he might regress in his training when we brought Belle in because she didn't have any. It's mainly his potty training that has regressed. Belle is currently in a puppy training class and Baloo graduated last year. So we're still working on them with sit and down and stay and leash walking. As for the bonding to each other vs us it works in odd ways. If Baloo wants to rough house he and Belle play, when he wants to tug-of-war it's usually half & half, but when he wants to cuddle theres no question who he goes to!
As for the future hubby and I are still planning on waiting six months and changing ourselves to accommodate more to the puppies. However, I might be fighting a losing battle since hubby is pretty certain that these dogs are not the ones for us and that dogs just may not be in the near future either. Although he changes his mind like a light switch; in the morning he doesn't think it'll work and during the evening he can't imagine not having them.
I'll try to keep updates coming every so often. Thank you