So far, our solution is to wait until James is 6 and then buy him a semi-loft style bed - not as tall as a normal bunk, but with a pull out desk and drawers underneath for extra storage. And of course Layla will get James' old bed (with trundle for any accidental falls out of bed).
I figured that I would give myself a nice long amount of time to make them both some new quilts for their beds. I ordered this fabric from - Lizzy House Castle Peeps. It arrived quickly and as James is extremely impatient, I thought I should whip up something to keep him going until the quilt is finished (hmmm, in a year???).
Bunting is now in place and he is happy..... although he can't understand why I am not letting him pull it down to use as a "Finish Line" for races...boys....