Hi - It's totally up to you if you let your dog sleep in the bedroom or not, but you have to be consistent.  It's not really fair on the dog to start out letting it in the bedroom and then change your mind and banish it to the living room.  Decide in advance and then stick to it.  If you want it in the bedroom, you also need to decide if it's acceptable for the dog to be on the bed or if it has to stay on the floor in a crate or on a dog bed.  Decide that and then stick to it too. 

Some things to think about are: Do you mind an animal moving around, possibly jingling collar, scratching, farting smelly farts, having audible dreams etc etc in the same room you sleep in? 

Like people have said, the idea of dominance is totally outdated, yes throw those books out!  Instead buy one called The Culture Clash by Jean Donaldson and that should do you fine.

Both mine have been in the bedroom from day one it helped enormously with house training and they were accident free within days when i heard them i got up, pardon the pun but luckily they never took the pee and woke up for no reason.
They know the rules NOT allowed on the bed they have their own matress with duvet (Yeah i'm soft) they are however allowed on once hubby has gone to work for half an hour (No hubby doesn't know i say the dog hairs were blown on the bed when i used the hairdryer :D :D ).

I've never had a problem and to be honest i like them near me (I can see they get upto no mischief!)