Yea, this is actually kind of a tough thing. You don't want to risk losing an eye or suffer serious injury, but on the other hand it sounds like you'd like to have the cat's company (eventually), and like the fact that the kitten is bonding nicely and affectionate etc.
I don't know what to suggest.
Just as an anecdote though, all three of mine have slept with me since they were pretty young. Neytiri was always just cuddly and great, never caused the slightest problem. The bengals though would sleep nicely for awhile, then wake up, scramble under the blankets and attack my feet. Many mornings (or in the middle of the night) I would be jolted awake up from a searing pain in the feet from a bengal attack. They never messed with my face though fortunately, so I tolerated it until they grew out of it. Various puncture marks on my feet for the first 3 or 4 months though