I use pee pads as well. Annabelle will go outside during walks, but uses the pads almost exclusively. I bought one of the dog litter pans for petsmart and put her piddle pads in that. That made a huge difference for her. Before that, she would have her feet on the pad but miss and hit the floor. It is a bit odd to have a pee pad in the house, but I agree it is better then a wet smelly carpet. I work during the day, and they have been great for me. Annabelle can go when she needs to and I don't have to worry about my carpet during the day. She also knows the "go potty" and will go on command. Sometimes she just squats and fakes it, but at least she tries!
My mom also has a yorkie trained to use pee pads, and my grandmother has her poodle trained. Holidays are a bit interesting because none of the babies want to go on a wet pad! Pee pads have been great for us, but they aren't for everyone. I order mine 500 at a time from petedge. I've found them to be very thick and reasonably priced. Good luck and congrats on the new baby!