There are many, many things wrong with your post. I'll try to respond in order of priority.
Firstly, let's talk about your and your DH.
Do you actually want this sex, or are you just having it to keep him happy? Is this daily?
Does he take on any of the parental responsibility beyond settling baby at night? Does he change nappies, bath her etc?
Because from your posts, he sounds like a selfish arse. He sleeps on the sofa while you struggle to get baby to sleep, just to he can spend 5 minutes getting his leg over without worrying about your satisfaction. It's all about him him him. When you have more time, does he care about your sexual satisfaction?
Is he aware that no-one has ever died from a lack of sex?
I would suggest that you do indeed go on a sex strike, not until he puts baby to sleep, but until he shows you some respect as a partner and a woman, not a sex toy there for his amusement.
Now let's talk about your baby and her sleeping habits. I'm not against co-sleeping, really I'm not. But your set-up doesn't sound ideal as your own sleep is suffering. Don't the lights/TV disturb her while she's downstairs on the sofa? Why are you staying awake upstairs with her for 2 hours? You need to work on teaching her to settle herself. She should have a bedtime between 6-8pm, and that should be it for the evening. I'm no expert on getting babies to sleep/settle, but your setup is not healthy for anyone and I suggest you visit the sleep boards on here for some advice on getting a new routine.