If the 32 ft limit is to the ridge, it would allow the first floor to be 2 ft off the original grade, the ceiling height of both floors to be 9 ft, the second floor thickness to be 1 ft., the roof slope to be 9 in 12 and the house width to be 28 ft. A steeper roof slope would force the house to be narrower and a lower slope would allow it to be wider. Placing the first floor higher or lower and the second floor ceiling height at 8 ft also affects the width of the house. If you keep the width narrow enough for a steeper roof line I would recommend a Shingle Style since IMHO it is difficult to successfully adapt the Craftsman and Cottage forms to a 2 story house. Alternatively you could consider the Greek Revival style (very popular for farmhouses).

Here are a couple of photos of the way we transitioned our bowling alley. View of the bowling alley from the lower-ceilinged dining room: View of the transition wall (we also painted the high ceilings a dark brown to help the volume ceiling feel less intimidating in comparison): View from upstairs (you can see how the loft hung out over the foyer): View of the living room part of our bowling alley: Hope that helps a little.

cpartist give excellent suggestions for how to deal with 10 foot tall kitchens, keeping the ambiance Craftsman and attractive. I will note I find 9 foot tall ceilings plenty fine for me, but go with feels comfortable to you. Although I do have a cathedral ceiling in the public part of the house.... (No, my house is not Craftsman). As someone else noted, you'll have to change your door heights and other aspects of your home to go with the increase in ceiling height - and that's not going to be cheap. Even at six foot one, I don't feel cramped in homes that have 8 foot ceilings - I was just in one (probably built in the 60s or 70s) this past Sunday (after months of not being to get out and visit folk very often at all). It was fine. But 9 doesn't affect pricing as much as 10 feet would. Please don't do without upper cabinets. You'll hurt resale, as not everyone is going to want to stop everything and remodel as soon as they move in. Even though I mostly have drawers, the lowest one is always a pain to access anyway..

I’ve lived in 2 lofts with high ceilings- one at 14’ the other at 15’. Loved them and prefer them to my little small roomed 8’3” ceilings now. The lofts were open spaces, didn’t have issues with cooking smells (just need good exhaust), was able to heat just fine (in NYC and Boston). These were in old buildings- former 1880’s fire house and 1900 factory respectively. Sounds bounce around in a high ceiling space, so it’s good to make sure you have plenty of rugs, soft furnishings and drapes to help muffle sounds. Long drapes are gorgeous against tall windows. Giant walls mean you have excellent space for giant art, tapestries, rugs on the walls…. Can’t wait to see what you come up with. Please keep us posted!