It's not about right or wrong or too strict or too lenient. It's about the two of you deciding together what the plan is going to be and sticking to it. Neither one of you should be telling the kids the new "rule" without both of you agreeing to it.
It's great to hear what other people do, but don't use another family's choices to justify your opinion.
That being said, we did a lot of co-sleeping when our kids were under 2. They are now 4 and 7. With the rare exception, they begin the night in their own bed. If our 4 year old wakes in the middle of the night he usually just climbs into our bed. Most of the time we don't even realize it until morning. The 7 year old will usually call for us if he has a bad dream, and we'll try to comfort him and encourage him to go back to sleep.
I understand what you mean about the kids being grouchy, and I'd want to avoid that as well. But I do understand where your husband is coming from. It won't be long before they will have no interest in snuggling. Also, I really want my kids to know that we are there for them 24/7. I understand when parent's say nighttime is for sleeping, but I fear the message kids are hearing is that nighttime is for sleeping, so you are on your own until dawn. I never want my kids to feel I'm not there for them in the middle of the night.
Beginning every night in their own bed makes a big difference. Once they fall asleep, the majority of the time they sleep through the night and coming into our bed becomes a moot (sp?) point.
I hope you get some good ideas. But really, try to find a solution that will make both of you happy.