I already answered in our buddies thread. But yeah, I'm fine with babies at funerals. Neither of my kids picked up on the sadness when we went, and babies can be a great comfort to the grieving. I think if your DH feels he needs his whole family with him, it's only natural, and I don't see anything wrong with it.

I'm always mindful that if they're making noise I step outside. But other than that, I think it's fine to take them to funerals.
I understand where you are coming from but I also agree with Liz. We went to DP's uncles funeral yesterday and DP liked both of us to be there whereas I had my concerns. So we decided to make sure DS had his morning sleep (this made me and DS miss most of the requiem mass while DP went by himself), but we came out after and went to the cemetery and the wake together. I agree with Liz; DS wasn't affected by the sadness and he was a comfort to the grieving. HTH