I'd advocate baby sharing your room, in her own cot, from birth to at least three or four months.
Babies identify their mother by smell, so having mum's scent near will make baby feel secure, and she will sleep better. It's far easier to tend to her quickly if she is distressed, and it's just a nicer feeling for her, and her parents.
For what it's worth, let her have a dummy if she wants one - the old wives' tales about buck teeth and so on are just that - so ignore them. A little comfort in the night makes sure everyone sleeps properly.
When she's three, tell her you are giving all her dummies to Santa to take to all the new babies in the world. Job done.