Hi
I pretty much second everything everyone else has said - I think crates are brilliant and so, it seems, do my dogs.
Nightime - if you're really happy getting up every 2 hours, that's fine, so long as you don't set the stage for your dog to get up every 2 hours ... for ever! Personally, I wouldn't. Pups can hold themselves through the night. At 8 weeks if I was off to bed around 10.30 then I set my alarm for 5am for a couple of days and gradually extend it, so that within a couple of weeks I'm onto my normal getting up time.
Size of crate, as others have said, needs to be just bed area. I don't like a bigger crate with space to toilet it as it's not what I want them to do in there eventually. If you're really worried about him toileting in it then I would put the crate in a small penned area so that crate is still bed and if absolutely necessary there's a small area beyond the crate to toilet in.
An hour is a tidly amount of time in our timescale, but a new pup to a new household, etc, it's a very long time. Again, just endorse what others have said ... pup in crate with door shut and you out of room for small amounts of time. I always feed my pups in crate with door shut - they never come out when they're making a noise only when they're quiet. They have stuffed kongs and chews in crate, again with door shut, and if they fall asleep outside crate I like to put them in if I can so they sleep and wake in crate - with door shut.
What you want to avoid is your pup getting anxious about being left alone, which is what it's about really, not the crate. A friend of mine has a really neat trick which although I haven't needed to use, I know it's worked for a number of dogs, especially adults being introduced to a crate (she works with rescues).
Trick is:
Whenever you leave dog in crate with door shut, place a tin of baked beans (or any other tin - has to be the same one every time though) in a place where it can see it, ie on work top. So, when you go out the room you place tin of beans, when you return you put beans back in the cupboard. Dog then always knows when beans our out you'll return!! Honestly, it does work. This is a build up for whenever you need to leave the house. So if all else fails, I'm sure it wont, try this.
Finally, never, ever put your dog in his crate as a punishment. It's got to be his den and a nice place to go to. My 3 dogs have their crates in the kitchen (it's not huge!) and each is covered with a blanket. They have vet bed inside and a water bowl (sort to bolt on to side). Although they rarely go in with doors shut now - only if I want to do stuff without them helping me

- they go in to sleep, to chill out, they always still get fed in crate ... it's brill, as soon as I start rattling dinner bowls I hear this scrum behind me, turn round and dogs are all in their own crate, heads pointing out asking if their nosh is ready yet!
Good luck, I'm sure you'll succeed ... they really are the best things since sliced bread!
Sorry, just to add, I think the shutting doors bit another poster said is brilliant - it stops you having dogs following you from room to room to see what you're doing, or for a bit of a stressing out reason, but also you could try leaving a radio on low when you leave him.