Great advice - I love the idea of Baxter falling asleep in my arms or on my lap.
In response to your question, I don't plan on crating him in the living room with the door closed unless I'm doing it for training purposes (perhaps while we eat dinner so he knows not to beg?). I just want him to have a little cave that he can escape to when he chooses - I'll leave the door open for him and he can wander in there if he wants. I'm definitely going to watch him like a hawk and give him potty breaks as often as he'll let me.
Sarah at Walnut Hill Yorkies (his breeder) says that he's fine going in a crate right now, but I'm just preparing for the possibility that he won't like being in there the first few nights he's at home. I'm going to put the crate where he can see us in the bedroom and get up to take him out...I just hope he doesn't get negative associations with his crate because we have him sleep in there (with frequent breaks) before he's used to it...
Thanks again for your response! I'm glad someone saw my little cry for help.
Baxter's Modern Life