Personally, I don't mind having our dog sleep in our room..... we live in a one room studio anyways, so it's not like we have an option....she sleeps in her crate under our bed (our bed is TALL), with her crate door open, so she can sleep wherever, but she prefers her crate..... however, she does sleep through the night, so it's not a problem. With such a small space, we need to make sure that it works out for everybody. We even have a houseguest now, so it's crowded!! 3 people and a Rott...haha, but it's working! She gets lots of exercise through the day so she's good and tired when the moon comes out. When we move to a house, I think I will still let her sleep in our room..... we'll see.....
I think you should do whatever works for you.