German Shepherds are great dogs, but big time shedders. Labs are great dogs, especially for people with children who will romp with them. We have one. A HUGE one. Not fat, just huge. Purchased from a kennel of hunting labs by my son and his wife. Six months later the dog became ours. 60 pounds (at 7 months) of muscle and dragging ability. I took him to obedience school, worked him to death at home, and he did well.
Watchdog? Yes, he races around barking wildly at everything from a car on the road below our house (which he can't even see) to turkeys in the garden (big threat there) to goldfinches landing on the back deck. He also likes to jump in the lap of unsuspecting visitors. All 110 pounds of him.
He is our first and last labrador.
To be fair, though, he was bred to hunt, not to be a house dog, from a hunting kennel. Poor choice. He needs children who will run and play with him 24/7. We don't have any left at home. And he is an American Lab, not an English one. English labs are much quieter.
Also, I didn't raise him from a puppy. He had six months of dragging little kids around, totally untrained, before we took him on. And he is a really loving, devoted dog. When he isn't racing around barking.
He's a real lovie. And our neighbor didn't sue us for the back injury. Yet.
SusanHere
P.S. Ever consider a shetland sheepdog? They look like miniature collies. Very alert. Females shed much less than males. Just don't get a nervous one.