One idea would be to put a wall of draperies across the wall in front of the bay nook area. You would of course close them for privacy and when they are open, they would frame the bay. Are those window treatments a curtain stirred on a rod? If so they are not nearly full enough.

This space has roman shades on the windows and sheers hung across the space but held back with hold backs the window seat (which is not finished in the pic)is a very inviting spot.