So, it makes some sense to clarify exactly what we're intending to do...
Our plan involves moving several walls, including modifying both original closets. One becomes an enlarged master bedroom closet while the other becomes a reading nook (a project already underway).
The master bedroom will have a vaulted ceiling, although we're still trying to figure out exactly how we want that to look. Our major thought is to have a beadboard ceiling. We're also expecting to install a skylight.
The master bathroom will become a little smaller and a lot less pink. We'll be removing the existing tub and replacing it with a glassed-in shower and then a clawfoot tub under the window. The toilet and sink will be replaced.
The second bedroom looses its closet, which is OK since we're expecting it to function as an office or nursery (speaking from a purely architectural standpoint at this point, of course!). We're thinking a freestanding wardrobe can function as a closet when necessary.
Finally, the unfinished portion of the floor will remain that way for the forseeable future. We have visions of that serving as a light-filled studio space, but that's probably so far off it's depressing to think about too much.
So that's that plan. There are plenty of detailed decisions still to make, but we've got plenty go to on to start with. We get things started tomorrow when some friends come over to help us tear out as much of the bathroom as we can get through.