We are also thinking of getting a new dog... Currently we have two large dogs (Golden Retriever and a Border Collie) We had three large dogs, but we had to put our sweet boy Colby to sleep last year. Our daughter has been clamoring for another dog for the past few months, and I want a smaller dog this time around. We have been doing lots of research, and the kind I have decided on is a Coton De Tular (can also be called Buttercups). I won't lie they are on the pricey side. (I found a breeder in Michigan and they run around $1000) BUT they are small (8-15 lbs) non shedding, and supposedly hypo allergenic (don't really believe too much in this as all dogs have dander and that is what people are allergic to) but they are extremely loyal, love to play if you engage them, but also happy to just lay in your lap. They are not barkers, and get along well with small kids. So I think this will be the dog we go for when we are ready..
This is the breeder I found:
www.buttercuppuppies.com