Inside.
We have one German Shepherd, raised from 10 weeks old as part of our family INSIDE with us. She is never outside unattended. She goes out only for potty, exercise, or playing with the kids in the yard type stuff. She does not potty in the house. In fact, she won't even throw up in the house if we are at home and she can get our attention fast enough...
She is not allowed on the furniture, and that has been the rule since she first joined our family.. from day one... never on the furniture. Not the sofa, not the beds. She has her own bed(s)- one in the family room near my computer, and one in our bedroom. She sleeps all over the house, however. Usually she likes to be where ever we are, but sometimes when she is worn out or stressed (too much activity/noise) she will go into the laundry room and lie down by the back door, or get in the bottom of our closet to escape the chaos. She'll sleep in the kids rooms for a few hours, in the dining room so she can watch out the front window for trespassers and the trash truck, in our room when I go to bed.
She does occasionally (usually it is only during the colder months) like to get on the sofa when we aren't home... (who wouldn't prefer it.. it's more comfy!).. but she knows it is against the rules.. and when I come home she puts her head down before I even get inside because she knows she misbehaved. She will not even put her front feet on the furniture while playing when we are at home. But she doesn't damage any furniture or chew anything or have any destructive habits at all. She just sometimes likes to get comfy... and I have read that getting on furniture lets them get "high" on your scent... NEVER let them get on your bed.. that is like doggy heaven to get to roll in the Alpha's scent!! So maybe the sofa thing is just because she is alone at home and feels comforted (?) by our scent on the sofa?
My question would be... what has changed that has caused your dogs to change their behavior? Did the one always poop inside or is that new? Did the one with the furniture issue just start getting on it, or has it always been a problem?
I never had pets inside as a child. My mother wouldn't allow it. I always felt that way. Until we starting researching getting a dog. We ultimately decided that if we kept it outside, we would not spend much time with it, (inconvenient, dirty, hot outside, bugs outside, etc) and then what would be the point of having it? Inside/outside, results in a very stinky dog that you don't want around either... plus is confusing to the dog, imho. So we concluded that having her in the house full-time and training her properly was the best choice. And it has been. She is a great comfort for the kids, and me when hubby gets home late from work, etc. And just the greeting when we come home.. the house is always a "home" not just a "house". :)
Has there been a change in your family make-up or behavior? Animals can be very sensitive to "issues" within the family. Are you paying less attention to them in general? Maybe the pooping one is asserting some independence and attention seeking? or could he/she be ill?
I get the sense that your husband may not have ever really wanted them at all... If that is the case, then I'm sure there are some dominance issues between him and the dogs. Maybe if you can address that, then the other issues will resolve and you won't have to change where they stay?
Inside works for us, and for our dog, but it was something that we discussed at length and decided on in advance of getting her. She is truly a family member, not "just" a pet. And that goes for both me and my husband.