While the room above isn't necessarily small, the concept of designing a canopy bed as a unit with a bathroom built-in is an efficient and attractive piece of design work that could work in a small space. There are some really nice ideas in this pic...
Blossom, designed by the Danish firm i29 (see "home 4"), is a bed on the front, a toilet and shower behind glass doors on either side and a sink area on the back. Then, of course, there's the huge tub, the lovely curtains and all that airy space that gives it such a romantic appeal.
(ReEdited from 2006-02-06 - MGR)