As you can tell from the name....my older cat is Sabrina (who is 11) and her daughter, Daphne is 10; and we will be keeping them without a doubt.
I spoke to my vet and he suggested that we keep the cats in another room at night, but if we're around the day, no need to 'separate'; my little cat sleeps on my bed, so the nights my DH has the baby, the cats can sleep with me; when the baby is with me, then the door will be closed and no kitties in the room. As for the myths, they are simply myths and we know that the big momma cat will probably not be too bothered by a baby (and we have friends with a cat, who have shown us pictures the cat being used by their toddler as a pillow); the little one Daphne is very territorial and we will monitor her, but I think there shouldn't be any problems as long as you use common sense.
If you're really worried, pls speak to your vet. When I was in college, my brother adopted a cat from a shelter that had been brought in after the family had a baby; that cat was the gentlest, sweetest and most personable cat I have ever met, so it was our benefit that they gave him away, but pls. talk to your vet, before you decide to get rid of your furry friends.
best wishes