I agree with "miche" and emma. I crate my crazy pup, Jack. He lets us sleep till 8.30. not a peep. one day till 9.40!
I think it's a habbit he's developed. He's awake, so why aren't you
? I don't have two dogs, so I don't know how one would influence another.... I think you should pretent to ignore it. You wouldn't be able to sleep, of course, for a few nights... one, two... but it will work!! I bet it will. Crating will help of course, and we too, have a blanket over it. You could do it in steps, first get him up at 6, 7, 8, etc. not all at once. Use alarm as a signal for him (and you) that *this* is what wakes you up - not his demands.
Watch out for emergency bathroom stops. Our pup was barking one night - I ignored it. Then my husband took him out, the pup had a nasty no.2.
I really think you should take that into control by not making him win!