Im not a big fan of the crate but there are many many who are, I am a mom of three grown children and I can assure you that baby time is important , so is your sleep and also the baby will not likely be on a schedule for a long while.
Im sure your hoping for a nice natural birth as well but please keep in mind that the baby is coming soon and the baby will come first in the morning, which means, changing diapers, making bottles, he/she could be crying for a while and need a half hour to be rocked to sleep. Unless you are going to have someone with you all day you may just want to stick with the pee pads as it is going to be very difficult to get the baby fed , washed , changed , clean bottles etc and you cant expect your dog to hold it !!!
This is just my opinion but having a house trained yorkie is no different then keeping a schedule for a baby, it has to be routine to be successful!
