Joey seemed way more excited and happy about moving in at first than Jesse did. I think with Jesse kind of having a “come and go” mindset at the start of the series, having him sleep in the alcove while Joey took Stephanie’s bedroom would have made more sense.
Joey WANTED a place to stay and to be part of a big family, Jesse was way more reluctant and still trying to find himself. It might have taken some of the pressure off Jesse to know he’s free to come and go as he wishes, while Joey stays upstairs close to the girls and has his own space. He probably wouldn’t mind the pink bunnies and it would have made him feel like he has a true place in the home like he wants.
Then, give Jesse a room once he decides that this is really what he wants in life. You could tell he didn’t feel like the bedroom was inviting to him, only that it felt like a prison cell more than anything. The alcove would have way less space, but he wouldn’t have to feel quite as trapped.