Unless you have neighbors within feet AND they are nosy, I would not cover those beautiful windows, nothing you hang over them will be a lovely as they are now.

I would find a new black base chandelier and lower it.

Really? I have never covered them because I love the moldings, but the room feels unfinished. Like a fishbowl, esp at night. Privacy is not an issue which is why I haven't covered them. What about side panels? Any thoughts on a color for a rug?

I'd use the colors your have gold and blue on a beige background. Some roman shades in a soft pattern would be all the windows need . I do love side panels but they wouldn't really fit on either window. Chandeliers should be about 30" above the tabletop and some little shades on the bulbs would be elegant, either tone on tone striped neutral or the blue in the chairs. Great room so good luck!