I vote for the curtains. I love the sliding curtains and am going to use them to create a separate office area in our family room. You can be a lot more creative and decorative in the design and aren't confined to the solid colors of blinds. With curtains the sky's the limit. Also, depending on your daughter's current age, the room may go through a few transformations over the years and you can change the curtains to fit the decor.
Another thing about curtains is you can make them out of anything. My sister made window curtains out of some of my nephew's old sports jerseys and they so cool.
I'm trying to visualize blinds without a window or door behind them and my mind just really can't fully go there. Also, do blinds come in lengths that go from the floor to ceiling or would you have to have them custom made? Blinds are designed to control light flow, so it seems they'd be a bit out of place without a light source. If you like the up and out of the way concept, maybe consider roll up shades (again, I'm not sure what lengths they come in)