The "tunnel effect" can be alleviated by pulling the closet wall back 12" from the door so it doesn't crowd you. It's actually a good location, it creates more of a foyer effect than tunnel! And it helps soundproof bedroom from hall beyond.

This arrangement makes better use of the space. I included two nightstands, one bench, and one reading or dressing chair. I hope his helps.

The entrance “tunnel” is super useful. It cuts sound, minimizes sight lines when the door is open, and creates a sense of transition between the the main portion of your house and your bedroom. I agree with the suggestion to shift the bed to the outer wall. Walking all the way around the bed to get to the bathroom will get tiresome, and I don’t like having a window at the foot of the bed.