Could you use a space like this? Or, your idea of a wine storage could be nice as well.

Agree with some sort of storage would be a practical solution.

That's cute! I could put a few shelves in that space. Would the light appear strange as it's further out than the shelves would be?

The bar sounds like a great idea and there are so many beautiful cabinets out there that you could use. A cute small crystal chandelier above the cabinet would give the corner a bit of "bling". (It would be even more helpful if you gave us a little more "context" to your above photo in order tie it in with the rest of your living room style.)

An example of a bar in an alcove similar to yours.

That blackboard idea is awesome!

This would be a great space to crest either a small reading nook or office space. You could add a desk and cute armed chair and use a fun wall paper to add depth on the back panel.

A little computer table nook with a chalkboard back and a few frames would be so cute!

Hannah, I love the chalkboard idea that's above the bar! You can add decoration that's customizable but also store your spirits.

The more room for wine the better! This is a great idea and a blackboard above could keep your appointments and reminders at the front of your brain!

take down that light. put in floating shelves. put in an art light that shines down onto them. get your self some cord cover and paint it the wall color. that light is just all wrong for the space.