Notice how spare the room is in the picture you provided. If they had added lots of bedding, a bunch of pillows, lots of art work, curtains, etc. it might also feel cramped. Sometimes decorating is like making marinara sauce. Start with the basic ingredients and just keep adding until it tastes, excuse me, looks right. In other words, I think you can.

Not only will it work, but it will work very well. In a room that size, the bed is pretty much going to fill the space. A canopy bed will not only fill the space, but it will be a great focal point and will even make the ceiling look higher. Keep things simple and let the bed take center stage. AT’s photo is a good example of getting it right.

i agree. i think it's possible to make it work, as long as there's enough space to move about the room freely and the furnishings are minimal and the wall color is fresh and light.

Check out Decorator Dave's bedroom, it seems to be about the same size and has the pencil post canopy thing going on.

http://gallery.apartmenttherapy.com/photo/chi-house-tour-daves-lakeview-redux/item/181304

Attach some brooms or similar to your current bed and see how it feels/looks. It should give you a better idea.

Different style but I did it in a room about that size and it worked.
http://gallery.apartmenttherapy.com/photo/la_erins-crafty-urban-cottage/item/259772

I agree with everyone who says it will work! I have a four-poster in my small bedroom and it's awesome. The posts keep the eye moving up so the ceiling doesn't seem as low - even though my bed almost touches the ceiling fan. Plus you notice the bed, not the size of the room. Big fan.

http://mymintgreenhouse.blogspot.com/2010/03/current-state-of-my-bedroom.html

AnastasiaBeaverhausen is brilliant. Great idea.

And awesome screen name.

The issue is whether you'll have a comfortable amount of room to get around the posts of the canopy. You don't want to be banging your shoulders on the bed posts!

AnastasiaBeaverhausen's suggestion of testing the situation first is a good idea.

I also appreciate both AnastasiaBeaverhausen's name and suggestion. I always try to mock up furniture out of pieces of cardboard and other things laying around the house. I extended my dining table with a card board box just to see how big I could go before feeling cramped in the room. Now I know what will work when I'm shopping. The broom stick idea though! love it!

I recently moved into a house where my room is as you describe and I am getting rid of my 4-post bed. It does feel very cramped to me. My last room was big and airy, with hard woods. This one is smaller with carpet and less natural light. Also the layout of the room (where windows and doors are) will matter a lot. That's not working in the new room for me either. I can't afford a nice head board at the moment, so I'm simply going to sell the bed and get a regular metal frame to use until I can splurge on a nice head board. Do you happen to live in Seattle? We could trade! Haha. :)

You have answered your own question.

It will be "tiny and cramped". A bedroom should be a comfortable space not one that you'll have to duck and manoeuvre about.