The crate is actually a Pet Taxi and seems to fit him very well. He definitely sees it as his "bedroom" and goes in there often. (He also likes dragging his toys and other stuff in there.) BTW, what you have suggested is exactly what we're doing... just in the kitchen and not in our bathroom. His crate is open and newspaper is down in the kitchen. If enough people are telling me to bring his crate (closed) into our bedroom at night, perhaps I should listen to the crowd.
Yea, I think if you bring his crate in along with some newspaper to your bedroom, that it might make a big difference. I know with Jake that when I slept right next to his crate (and I mean literally right next, I mean I was on the floor next to his crate door), he was a lot better. But as long as he knows that you and/or your wife is around, very close by, I think he will be fine.