Do you think this could work in the nursery? Design help

So this first picture is our nursery. (Please ignore the blacked out canvas.) we are wanting to use this wall for bookshelves but I’m not sure how to place them because of the chair rail. The picture on the bottom is the one I’m using for inspo. Do you think it’s okay to put the bookshelves up higher above the chair rail and then do a cute bin for stuffies/blankets? I liked the idea of putting them below until I realized how much space I didn’t have below the rail and also my husband saying, “imagine baby running and hitting his head on a bookshelf.” (He’s right.) What do you think? Or any other suggestions? His closet is to the right.