Welcome to YorkieTalk
He doesn't have to go for regular walks (especially before he gets all of his shots) but you don't want to totally isolate him either or he won't know how to socialize later in life. I would take him to friends and families houses to interact with people (just make sure their pets are vaccinated). Even this it is still a bit risky.
Pee pad training is fine if that is what you want to do. Some people don't like the method though because it is telling the dog they are allowed to go in the house (which could lead them to going off the pad and on the carpet). It should work fine though.
He can sleep anywhere you want him to.
If it were me I would crate him in somebody's room (so he isn't alone). I would do this until he gets big enough to be comfortable with him not getting into things or rolled on. Then I would sleep with him.
If you crate for the first couple months he won't pee on the floor either. It wouldn't hurt to get up during the night and let him do his business. They can only be expected to hold their bladders for maybe 45 minutes to an hour at that age (longer at night).
Eight weeks is very young to get a Yorkie pup. They are very prone to hypoglycemia, so please watch him closely.