Co-sleeping is the best...don't worry about the heavy blankets...
A few suggestions:
My son woke several times during the night and every time I looked at the clock I got angrier and angrier. That combined with my husbands very loud snoring made me nuts and exhausted. If you keep looking at the clock every time he wakes you, turn the clock around. Trust me, it works.
My kids slept with me for years. People all over the world have been doing it since the beginning of time. Totally normal and I think totally healthy. When you have a child, it is natural for them to want assurance throughout the day and night. I think it is wrong for parents to think that they can shove their kid aside for a predetermined amount of time so that the parent can "get their life back" or "get enough sleep". If your family and friends think it's wierd, let them feed their kids formula, sucking from plastic, getting constipated and sleeping all alone surrounded by Winnie the Pooh instead of you.
Sometimes formula is a necessity, like adoption or for example, my first child that was born at 24 weeks weighing 1 1/2 lbs. I pumped my milk for 4 weeks for him and he was fed this through his Nasal Gastro tubing, and eventually through a bottle. He was never able to nurse because of his severe disabilities. The suck, swallow breathe combined with his tonic bite were not a good combination, to say the least. My milk dried up and we had to use formula. Fortunately we were so poor, the government paid for it (thank you all for supporting us through your taxes).
Leon slept in his own room on a heart monitor for a year. He kept me awake all night long with his incessant crying. After my daughter was born, when he was 2 yrs old, I couldn't stand it any longer so I made a make shift bed right next to ours and brought him into our room. That night was the first time ever that he slept through the night. Amazing! He needed his mom! Because of his severe cerebral palsey, he couldn't call out my name or crawl out of the bed to come to me, so he just cried to get my attention. (yes I'm crying as I write this)
As for the baby using the nursing as comfort rather than nutrition through the night, my daughter slept with us and nursed for years. It was rather irritating when she Would just nurse a couple of sucks and go back to sleep, but she needed this. She was the secondary kid...always having to wait for me to take care of her brother first. This was a time when my focus was on her so if this is what she needed to get through the day...so be it. If it really bothers you lay on you tummy so he can't get at you. Try rubbing his back to let him know your their.
My opinion: crying it out teaches your kid that when they need you, their needs won't be met. I do not believe in it. Caring for and loving your child when they think they need you will build confidence and inner strength. You cannot spoil a child. Fruit spoils and then you throw it out.
Their dad and I are divorced now and I have a third child.
I get no child support and am the head of household. Leon died when he was six so I now have 2 kids.
Longer story short...They are awesome. My 16 year old daughter is a straight A student at one of the top high schools in Chicago. She's smart, respectful, kind, caring, considerate and grateful. She is not a typical kid. She is a shining star and I'm not saying this because she's my daughter. People go out of their way to tell me what a wonderful person she is. My 10 year old boy is terrific. His dad and I never married and so I have been the sole round the clock support his entire life. (Dad is involved and our son is the love of his life but gives me no child support) Sometimes I barely see the kids throughout the day what with school and my working. Even now sometimes he wants to sleep with me. He needs me at night to feel cared for during the day. He is an awesome kid...doing very well in school at one of the top Chicago magnet schools, he is a kind, caring and sensitive young man (he's also headstrong at times...typical boy?).
I know that my kids are who they are in large part because they were/are allowed to sleep with me and were breast fed for years.
So in conclusion, let the baby sleep with you, keep nursing, and turn the clock around. This will all be over in about 20 or so years.