L.B.
Oh hun I totally understand!!!! I have 4 kids and the things they do to "help" just drives me bonkers.
Anyways have you thought about those moses baskets ? You could put it by the side or foot of your bed just for sleeping, not to pricey. Or if you have a pack in play, you could set it up in the living room and transfer her right before you go to bed.
I have a 2.5yo boy and I would never let them stay in the same room I just don't trust him, he is too young to understand the idea of real harm.
Might be a tuff few mos ahead of you but it will get better and they get older :)
Oh btw my #2 daughter used to hold up her hands by her head when she was 6 mos old to "protect" herself from her older sister who was 2 at the time. LOL they learn early to protect them selves ha ha ha. Just think of the stories you will have complied to tell them in 10 years :)
L.