This must be your first puppy.... take a minute to think about your expectations for the newest member of your family. You have only had him with you for a week, so it really isn't surprising that he doesn't understand what you want yet. It's not like you speak his language, or you, his. But you also need to consider your techniques.
If you are calling him by the name his breeder called him, you should see him look at you when you say his name. If you have re-named him, then you need to start by teaching him his new name.
Before you give your dog a command, you need to make sure you have his attention. So, say his name, then the command. Do not repeat the command. If you say "sit" over and over again, the dog will not associate it with a behavior. If you say, "dog, sit" and the dog sits, praise the dog verbally and with loving scritches. If the dog does not respond, say "no", then start again by using his name to get his attention. Every command you give the dog should start with his name so you know that he is paying attention to you. ("Sit" is relatively easy if you show your dog the treat, then slowly raise it over his head while giving him the command to sit. His nose will point to the ceiling and his rump will automatically hit the floor. Tada!)
If you want to avoid a 3am wake up, bring the dog to bed with you when you go to bed. He will settle in before you drift off and not disturb you in the middle of the night. I would avoid rejecting him as he is only saying that he wants to be with his family.
Chasing birds, and squirrels. Examining (and tasting) bugs, grass, etc. All normal. Allow his walks to be time for him to explore and learn about his world. Walks are a social activity for dogs and not just a time to "water the grass" and "fertilize the lawn". Long(er) walks will help you and your dog bond, tire him out, and deter unwanted behavior (like impromptu pillow fights). Puppies (and dogs in general) do tend to sleep more than us humans, but they aren't always in a deep sleep state.
Let us know how things go.