I am a huge advocate for bed sharing/cosleeping! I only wish it had occurred to me earlier to let dd sleep tucked in under my arm as I spent the first 4 months of her life with her sleeping on my chest with me half sat up in bed! My back was so sore but I wanted her to have a good sleep. It only occurred to me when she got a bit bigger to lay her on the bed beside me and curl around her! DUH!! As I type she's fast asleep (horizontally) between dh and I! Luckily we bought a king sized bed so she can stretch out horizontally and we have room to sleep!
Go with your instincts!