Try a swing. The plug in kind to save tons on batteries! My kids coslept with me, half liked swaddling, half didn't, but during the day, if I needed a shower or to eat, the swing was a miracle worker.
A child will develop flat head if left in anything too long (that would be a very long time period). None of mine got it, but was never left in anything for more than a long nap. One of mine was a marathon napper. ;-)
I nursed in bed at night, so I did alternate sides baby was on so it would be facing a different way during the night. My first was a side sleeper. My second was just a "hot" baby and couldn't wear too many clothing items ( at seven he still sweats at night, even in just his underwear, with no covers, in the winter, in the coldest room in the house) :-). Third and fourth loved the miracle blanket, but if it is warm then not too much underneath it for bed; yours might be too hot. Also, when you put them in it, you are supposed to do the shushing and swishing method to calm them. Try reading "The Happiest Baby on the Block" book. Quick read, but changed everything about how I calmed a baby. Great book; actually read it at the book store, it was so interesting and quick.
Most of mine also loved Moby wraps at this stage. They are next to you, but at least hands are free and you might be able to eat or walk around more. Boppy worked for keeping arms from numbing as well.
For co-sleeping, I invested in a cosleeping pillow that went on the side of the bed UNDER the fitted sheet. I slept in the middle and baby slept between me and the pillow (not really a pillow, more like a soft barrier so baby couldn't roll off the bed). Great investment. I think it was around $100, and we still use it so my 2 year old doesn't roll off our bed.
Just remember, babies love to be held and need to be close to mama. It is a good thing. Don't beat yourself up over where she wants to be or worry too much about what the experts say. Every baby is different. This too shall pass, and you might be surprised at how you will miss it. Hugs.