I can't believe I am in a position to offer advice to someone else!
I have had my pup for a whole week now, and before I got him I asked just these questions. I eventually went for a 36 inch crate, which he loves, but do not shut the door. He has a bed inside it to make sleeping more cosy for him, and I put his food inside it too. At night he can leave the crate (in a puppy proof area) to do a wee, and has never had a problem with this. My downstairs is very open plan, and not at all puppy proof, so I actually have the crate inside a large pen, with paper / puppy mats (more absorbent than paper) over the floor area. He settled in immediately, never whimpered at night (not even on night 1) and only does one puddle in the pen overnight (which i think is shortly before I come down - always at the entrance of the pen, where he is waiting as i come downstairs, and always very recent!)
Like you, I had intended to have him in the crate, with the door shut, overnight, before I got him, but everyone here advised against it and my system has so far worked fine. However, I will have to try to crate train him properly at some stage, as the pen does take up a lot of room...
Good luck - and enjoy!