But that means he'd be limited to only having an arm around the other two...

[hider=Squiggles]Okay, see this quick diagram?
[URL=http://s248.photobucket.com/user/the_help_you_doll/media/three-wayhug_zps5b4007cf.png.html][IMG]http://i248.photobucket.com/albums/gg175/the_help_you_doll/three-wayhug_zps5b4007cf.png[/IMG][/URL]
He is able to hug human man with his legs while resting his face in human woman's chest while hugging her with his arms, a balance.

Now...hmmm...this would a proper-ish way, to allow for some mobility, so he could roll over here or there, or at least shift a little.
[URL=http://s248.photobucket.com/user/the_help_you_doll/media/four-waycuddle_zpsfd3a9734.png.html][IMG]http://i248.photobucket.com/albums/gg175/the_help_you_doll/four-waycuddle_zpsfd3a9734.png[/IMG][/URL]
But like I mentioned, only an arm and a head for the two to cuddle with, while the middle person gets all of the leg.[/hider]