It's totally fine. When I was working on house-training my dog, she was in the crate while we were at work 8 hours and again when it was time for bed (another 8 hours). The time she was out we made sure we gave her lots of exercise and attention. She got used to it and was completely fine and happy. We did this for at least six months and then began to let her out at night. She was crated anytime we left the house (work, shopping, etc). After one year of this she was completely house broken and a very happy girl.I'll add that when we got her at 4 months old she had not been trained and it took an unusually long time to teach her good behaviors (like potty outside) due to her lack of attention and care before we got her. That's why she had to be crated for a year total. My other experience with crating only took 3-6 months.Crating is humane and not mistreatment. Your pets are looking to you to define the rules, do this when they're puppies and it is easy and enjoyable for everyone for many years to come. =)

I think you're doing an excellent job, but I would make the crate smaller. Keeping your dog in a LARGE crate will encourage him to urinate and defecate in the crate, making potty training difficult. Make it smaller, enough room for him to stand up, and turn around. Feeding IN the crate does help with potty training, however. If you want him to have more room, use am EX-Pen, and put puppy potty pads in there. He will have more room that way. EX-Pen:http://www.petco.com/product/5874/Precision-Pet-Eight-Panel-Wire-Pens.aspx?Nav=180&cm_re=apr20431808-_-10ppens-_-btn

I don't think it is too much however your crate may be to big I read in a book about chi's that because they get cold so easily you should keep them is a size appropriate crate. My chi loves his crate and he is almost two he sleeps in his crate all night. I take him out in the morning we go for a walk and then he goes back in his crate while no ones home sometimes six to eight hours but not everyday! He goes on an evening walk then plays till about ten or eleven he goes to his crate. Chi's get scared by alot of loud noises and the vacuum loud trucks etc... and every time he gets scared he runs for his crate he even pushes the door open with his paw to get in!