Michael's Room cutting into the knee wall would offer more floor space, plus a very cozy sleeping nook. We would do just one bed, but it could be slightly enclosed, so there's a window at the head of the 'bed'.
The Hand-Me-Down-House | HGTV, olive bucket lights, built in bunk beds, grey stripe bedding, navy blue walls
Instead of bunk beds, opt for space-saving murphy beds in a kids’ room or guest room. | 33 Insanely Clever Upgrades To Make To Your Home
Girl's Room with lofted bed | Nightingale Design