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I have a great Aunt Rosalie, so that was my first thought. No one calls her Rosie. She's Rosalie to everyone.
I don't think it's arrogant at all. I think it's wonderful.
The Twilight connection will fade. (As long as you don't give Rosalie siblings named Alice and Jasper!)
I think Rosalie is a beautiful classic name. I'd use Rosa as a nn before Rosie. I call all of my children by their full first names, though, so I may not be the best person to answer that one.