until he started laying down just beside the bed...am I doing something wrong? Thoughts?
You're really asking him to do a bunch of behaviors all chained together. Go to the bed from across the room, lay down on the bed, and continue laying on the bed for a period of time. The key to any behavior is breaking it down into its components and teaching each one seperately before trying to get the dog to perform the complete behavior chain.
My guess is that he doesn't understand that the words "go to bed" or the presence of the bed have anything to do with what you want him to do yet. He is probably cueing off the very obvious body language you are giving with the lure. This very likely looks just like how you used the lure when you taught him "down" originally. It is also very likely that to him, "down" means "lay down right in front of you". It sounds like he is trying to do the right thing as he understands it.
First, and completely seperately, I'd work on "down" on the bed until you can get it without luring if you don't already have it that solid yet. Once you've gotten a solid down on cue, you can start adding duration (staying in the down on the bed for a length of time).
Then, also completely seperately, I'd work on getting him to go to the bed--not really caring what he does there, stand, sit, lay down or whatever--and reward for that. Toss the reward onto the bed for him. Then I'd start adding distance to the equation. Send him to the bed from 2 feet away, then 3, then 4 always tossing the reward onto the bed from where you are. When you can send him from across the room, you know that he really knows it is about going to the bed.
Then I'd go back to only sending him to the bed from 2 or 3 feet away but once he's on the bed, I'd start cue a down. Do a whole bunch at a short distance and then increase the distance until you can send him to the bed and tell him down from across the room. Once he's doing this reliably, you can send him to the bed but don't say "down", just wait a bit. If you've done alot of practice, he should anticipate the verbal "down" and do it on his own. If he doesn't, just go back to practicing with the verbal "down". Still toss the reward from where you are to the bed.
Gradually, lengthen the duration that he is down before you toss the treat. Then, gradually start adding all sorts of things like sending him to the bed to settle into a down while you move around, turn your back or leave the room.
Good luck training.