Instead of a crate, you can confine her to one room - kitchens are usually pretty "safe" - if there's no door, or half-door, you can keep her in with a with a "baby gate." The cats can jump over, but she can't, (not yet). That leaves the cats free to come and go, and she in a place she can wander but not get into too much trouble.
(My brother and his wife did this, and still sometimes do, with their rescue-pup. She was a boisterous 6-month-old, with plenty of enthusiasm, but NO manners. The cats were NOT amused, but quickly staked out "their" territory, and knew when Lady was confined, and things were "safe.")
The point of feeding her when she's on "her" blanket is that is becomes more hers, a good place, a safe place, a place where good things happen. She will be less inclined to soil it, and will treat it, hopefully, as her "nest."
The more she is on it, the more it smells like herself, the more she'll like it.
I think Carrie is trying to make sure that YOUR bed never becomes a point of contention - YOU are Alpha dog, YOU get the "big bed," lesser dogs in the pack get their own bed.
Hope this helped!
Oh, and the short leash inside is so you can grab the leash easily and control her if need be. A leash is far easier to hang onto than a slickery wiggly puppy!
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