[Vinniedoggy]

This sounds exactly like my little guy. He used to growl at my partner when she got into bed, or snapped at her when she leaned over to get a hug or kiss. He was (and sometimes still is) territorial and has even bit me a couple of times. What solved our problem was being more stern "pack leaders." I know not everyone agrees with Ceasar Milan's approach, but it really worked for us. It sounds like your wife is making the same mistake I did and being too "nice." No more nice - you've both got to be stern and consistent. If he snaps or growls while on the bed, he goes on the floor. If you're consistent, he will eventually learn that behavior is not acceptable. I would not crate at night, but rather put him in a bed next to your own bed or at least in the same room. That way, he is close to you both but has his own space.

Some dogs will always be snappy little dogs. My formerly aggressive dog, Vinnie, is just that way. He's much better now, but I still never let kids pet or play with him unless I know them really well and am sure they know how to behave around him. Yes, you can have children with a dog like this, but they will need to be supervised around the dog. One thing I've found with Vinnie is that he's very tolerant of toddlers and babies more than he is of older children, almost as if he knows that they are defenseless and mean no harm. And remember that a little Yorkie cannot do much damage. Yes, they may break the skin and cause a little bleeding, but given their size, there's not a whole lot they can do (although I would never leave a dog like that alone with a baby). My grandmother had a little yippy dog when I was a kid who bit me no less than a dozen times. I've still got a couple of scars, but I survived. My parents had a cat when I was a baby/young child who was tempremental and scratched me a few times. I simply learned to avoid the cat.