I've read that it is a myth that children "sleep through the night" before the age of 2 (it's just one of those dirty little secrets that moms don't want to admit to!) I agree that nursing and holding him are beneficial, because studies have shown that supporting and 'indulging' children actually creates more confidence and security later in life and that trying to encourage too much 'independence' too early actually causes insecurity and dependence! Use of the "cry it out" method has also been shown to be associated with adult sleep disorders like insomnia! These are recent studies which overturn a lot of commonly held beliefs. Dr. William Sears calls it the "pay now or pay later" philosophy, basically saying that the more you put into them the first few years, the less trouble they'll give you the rest of their lives.
BTW, I co-sleep, nurse, do all that attachment stuff and mostly give my son anything he wants (at home, not in public) as long as it is not dangerous or really bad for him. I often think I am overindulgent or spoiling him. Some of this is influenced by my husband's mexican family which is very loving and children-oriented. BUT, at 24 months (and ever since he could interact with others) he is always willing to share things with other children and adults if they even ask him for something, and says "tankee" (thank you) whenever I give him something -- and I never taught him these things! I think it's because I generally give him something if he asks for it at home, and I always thank him when he hands me something.
I've noticed many children who have a hard time sharing, whose parents are very insistent that their child "share", often yanking the object from their hand. But I think these children only learn to grab from others because their parents do it to them.
These are just my observations and what I've learned from my readings, but I really think that comforting your child in the middle of the night will not only make life easier for you in the present, but also in the long run as well. For more information, read any of these William Sears books: "The Baby Book", "Attachment Parenting", "The Discipline Book". I guarantee you will not be wasting your time reading any or all of these.