Hi Fishman, glad to see you had such a good time.
We've had experience of both the fold down & pull down beds during our cruising. As you thought, they either fold back up into the wall, or push up into the ceiling. The only real difference being that the ones which push up leave the cabin looking more spacious.
When you first arrive, you will usually find the beds are 'put away' in their daytime positions, so that you can pack & freshen up with minimal intrusion. The when you go for dinner that night, your cabin steward will put the other beds into position & make all 4 beds up. Note. You will not be able to have a queen bed setup as the top beds need to use small ladders to allow the children to get in/out of them. So you will end up with 4 single beds.
In the morning, when the steward makes your room up again, the beds will be folded/pushed away again allowing the more open aspect again.
I would suggest that whilst you are looking into the cruise, you ask your agent to check prices for the larger cabins where the settee converts into a double bed. If the price isn't that much more, it may be another option.
Hope this help,
Welcome to the 'cruise addiction' :)
Alan & Katrina
Last: Cunard Queen Victoria January 2016
Next: Oceania Nautica Aug 2016
Then: P&O Oceana December 2016
Golden, Grand(2), Caribbean, Royal, Sea(4+1 aborted)
Adonia(4+2), Arcadia, Artemis(2), Aurora(5), Azura(2), Britannia, Oceana(3), Oriana(12), Ventura(2), Victoria(5)
QM2(2), QE2(9), QV(7), QE, Caronia(2), Minerva, Minerva II, Fred.Olsen(8), NCL Jade, =X= Eclipse, HAL Ryndam, Aza.Journey