Maggie sleeps with us ... she's the diva .. she knows it ... we know it ... but she still started off in a cage.
Daddy is in a cage ... and has only recently at 18 months come out of the cage but still locked in the laundry room. He has stoppped eating stuff but still occasionally pees his bed and just doesnt seem to care!!!
Linus is now just over 4 months and is in a cage, but he is so much better that I do finally see him coming upstairs and also because I call him my and so can't wait for the day when I get to cuddle him during the night too But, for now, just like you he is in his cage. Apart from the fact that he may pee, poop or chew something dangerous when I'm asleep I also want him to be totally house trained before he comes upstairs.
The alpha question is personal to each dog. Your puppy has undoubtedly accepted you or not as pack leader. If you become pack leader what room in the house you are in makes no difference.