We haven't done this but I think it's a great idea! No getting up in the middle of the night. And I would sleep so well knowing they were right there. I hated having DD1 in a room away from us. Now that DD2 is in with her I feel better because they're together and in the house we are now their bedroom is right next to ours anyway.

Legitimate question here...

How does it effect your sex life?
Probably spices it up. You have to have sex other places instead of bed. We have done a lot of cosleeping here and lets just say the shag pile in the lounge room has lived up to it's name