I have 4 mature cats, over the course of the last year I have added 3 yorkies, the most recent addition a little 12 week old girl weighing 2.5lbs. In my expereince, the cats and the dogs co-exist but don't interact with each other. To be safe, when no one is home, the yorkies are in an ex-pen (the two same weight ones in one, the baby in one right beside them). I am just as worried about the 2 bigger pups going after the baby as the cats...so far we have had no problems at all (knock on wood).
They seem to have figured things out amongst themselves, I am pretty lax as a pet owner though I don't involve myself in any play between the pets although I watch to make sure its only play.
One of my cats is similar to yours...we have had to remove many a bunny off the back deck in the last few weeks. But that same cat causes no problems in our home and hasn't gone after the rest of the pack. I think its different for him when he is outside in hunting mode.
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