Most vets will suggest neutering at 6 months here in my town. I have heard of some doing it sooner. I believe in neutering the sooner the better for two reasons: 1. He will begin to mark his territory in the house. The pee that they mark with is much stronger that reg pee to relieve them selves. 2. If there is a female in heat near by he will want to run off to find her. That can be a dangerous situation.
You are right that the sleeping on your husbands chest in my opinion is just cuddling. And when your husband is pushing him away he thinks that it is play time. Stop the unwanted behavior right away, with no hesitating. Be consistent with the discipline and reward the good behavior.
You are right to be worried about him being eaten or falling, I would be! But..Yes, start potty training him to go out side! Do whatever needs to be done to secure the bottom the you fence and never, never leave him unattended. If you are potty training you should be out side with him any ways...if not who will praise him when he does a good job? Now for some advise about the pee pads that you have in different areas of the house. You are pretty much giving him permission to pee anywhere he wants. My suggestion would to start cage training him ASAP. Only keep the pee pads by the door that you routinely take him in and out of to go pee. I swear by cage training..I have trained all of my dogs including the four Yorkies that I have using the technique.
Please research YT forum an find similar threads and post on potty training for help and feel free to read my page on training tip on my site.
http://dawnsyorkies.piczo.com/?g=33521666