Sleeping baby in the room is ok.
I am more comfortable with a younger baby who will not sit up in the crib/look through the slats. We took DS out of our room and into his room around 10 weeks of age. He was in a PNP at that time. I do not really think that he could see anything if he had woken up.
With our older DD, she came back into our bed for co-sleeping around age 9 mos after being in her room from age 3-9 mos. We did not DTD with her in the room at that point.
I do not like the idea of the baby waking up and me being watched.