I think I might have miscommunicated the terminologies. He doesn't really stay in a small crate, rather in his play pen area. I took a picture below for you to see. It isn't really bad at all, he hast plenty of toys and space to himself for the duration of the week day.
playpen.JPG
In all the articles and books I read, it says that crates (for puppies) and play pens for small dogs are absolutely his friend. If you train your dog to appreciate and not fear the area he stays in, his behavior will be fine, with no problems.
Tiger is fully accustomed to staying home during the week, and doesn't seem to have separation anxiety. He doesn't destroy or chew anything like his wee wee pad or any of the toys. During last summer (06) we removed his play pen area and allowed him freedom to the entire room (its our office \ computer room), and he was fine, until he learned to snatch stuff off my desk. (Yes my desk). There were just too many interesting items for a little boy to handle, and we brought the play pen back for now.
I think the biggest problem we have which contributes to his peeing at home, is that my GF (and her Mom when she is over, and even I at times though I try not to anymore), excite him too much. Excitement brings submissive behavior in him, and he just lets it rip. Having a yorkie is probably as challenging as a kid, well maybe not quite.
Thanks,
Luke