The sleeping arrangement sounds fine. I hope that Bones is at least seven weeks old--eight would be better. There may be some threads in the puppy place about the special needs of such a young pup.
One thing that I would suggest is making eye contact with him. Hold a treat, say his name and bring the treat to your face, smile and make eye contact and give the treat. This will encourage him to start looking at you for all good things and reinforce his name.
You don't sound overwhelmed or flustered at all. Just remember to begin as you mean to go on. If Bones will not be allowed on the couch when he's older, don't let him nap on it now even though he's just a bumble pup.
(So says the woman with a pit bull that sleeps on her bed....under the covers.. between her and her husband... with all of her pointy paws extended.)