Indie just turned 13 months old. Up until about a month ago, she slept in the crate in my bedroom with the crate door closed. She never really had a problem with it. The first few nights, my kids slept next to it in their sleeping bags. I now keep the crate door open and my bedroom door closed (or she will harrass the cats all night long); she starts on my bed, but then goes back to her crate on her own. She likes her "house" - and I think she gets too hot on the bed. She also likes to sleep kind of on her back. In the crate, she can wedge herself against the corners to get comfortable on her back.
There is too much in the house or even the bathroom for her to get into at night. Just ask my old, completely demolished cell phone. Fortunately she didn't swallow any of the glass. Indie couldn't use pee pads as a small pup, she would just shred them. I was afraid of the problems that could be caused by ingesting plastic and the absorbent material. I hated the thought of her being uncomfortable, but the thought of her ingesting something she shouldn't (blanket, dog bed, towels), was worse. Just remember - most will chew/shred just about anything - so be careful what you leave with an unsupervised pup.
We used the x-large crate until she was about 7 months old. When her ears stuck through the top when she sat up, I bought a kennel to use indoors. It's 5x5 and 6 feet tall. She has plenty of room to move around when we aren't home. It's has a black, powder coat finish - so it's not too ugly for indoors. We keep it in the basement. It used to be upstairs in the mostly unused office, but I couldn't trust her to not chew on the carpeting in there.
Copper (Lab mix) 2001-
Indie (GSD) 2013-
Spike (Rott mix) ?-2012 RIP big boy
Charlie (meow) 2000-
Puma (meow) 2010-
Nitro (meow) 2010-