No the baby won't be able to lay between the seats as there's a solid partition between them - if one of you can get comfortable laying on your side, the baby can take up the other half of one of the seat/beds.
You're in the right seats though, if the kid will settle in the bassinet or the baby seat then it works great. Hopefully on the night flight he/she will sleep for most of it.
The worst part is if there is turbulence - you'll need to strap the baby to the extender seat belt which inevitably wakes him/her up.
I've flown long haul in CW probably 10 times with one (and twice with two) babies and it's not as bad as you think