Your welcome Moxie. Definitely pursue the crate training. I understand where your fiance is coming from, but you're right - your dogs will be better off.
Our dogs love their crates, and it actually is a source of comfort whenever we are away and my inlaws watch them. We also don't close the kennel door for our puppy anymore because she's so good about staying in it at night - she simply has no desire to leave it. At bedtime, we just say 'Kennel Up' and they both go running excitedly and get in their kennels on their own.
