My first reaction when I encounter a small bedroom is to work hard to gain floor space so the room visually feels bigger. Why not embrace the size and take advantage of the room's attributes. In this case, the view.
Granted this is a vacation spot - the Surf Lodge in Montauk, NY. But you could certainly bring the vacay vibe to your own bedroom by floating the bed. Also, notice they have used the back of the headboard as a "wall" for the dresser.
I think it would be dreamy to wake up to an amazing view every morning.
Hope you have a marvelous day! M.