Oh Curious, that is one gorgeous dress, just my cup of tea!

It suits you well.
I totally understand the feeling when you say it's a bit too dramatic. However ideally I would leave it as it is, brave it and enjoy the hippie feel. If I were you I would simply take in the waist and wear it with a dark ribbon choker, victorian style lace-up boots, and flowy hair to parties/shows or when having guests over. Also if you accessorize with rustic necklaces, scarves/shawls, chunky semiprecious bracelets and silver rings to add some detail perhaps it would make it easier to wear.
Alterations: if anything, I would take in the sides and waist a bit, so it fits you better, like in the second and last photo. Only, I would leave the lace in because it is beautiful. Perhaps sew sashes on either sides so that you can tie it tighter in the back? Oh, please whatever you do, don't change the sleeves, they are so gorgeous!!!!
If you still feel the dress is difficult...perhaps make it shorter...mmmm, but what a pity, the length is so perfect. Perhaps you can cut the dress in half five inches below the waist so you have a long skirt, plus a blouse with a peplum? Then you can mix and match as well.
Hope that helps!
By the way I love this thread.
ButBeautiful, there is a lot of info about ironing and heat transfers and printing in this thread...I know it's really long but it's fascinating read, well worth it! Do you have some specific questions in mind?