DH always cuddled DS to sleep (he'll be 5 next month) and honestly it did turn into a rod, but that's not always the case! :) If it works, it works.
Our problem was that he was so used to Daddy sleeping with him, if he woke up in the middle of the night and DH wasn't there, he'd come to our room in tears (or anger, usually...he's not at his best in the middle of the night!) and climb in. He's a restless sleeper and no one was getting any sleep and we were all at each others' throats. Plus, often DH would fall asleep in bed with DS, and I'd hate to wake him, so we'd get no time together and he would be grouchy that he hadn't gotten anything done, plus achy from folding his 6'5" self into DS' bed. :)
Now we are doing bath, then pee, then jammies and teeth, then we all cuddle together on the couch and read stories, do prayers, then it is up to bed (with a little water bottle so the "But I'm thiiiiiiiirsty" thing isn't happening :) ). One of us tucks him in but does not sit or stay, and if he makes a huge fuss he does not get TV time the next day.
The first night was awful, he was furious! But we explained that we all need a lot of sleep and this is the best way. Whenever he fussed we just said "We love you, but it's bedtime. Goodnight." It got a little easier day by day and now he is fine.
Also we make sure to really wear him out during the day but not put him to bed when he's over tired, as he can become almost hysterical, he is so tired. Blackout curtains and fan for white noise have helped him sleep longer in the morning, too.
Good luck! It's so hard when no one's getting enough sleep!