I would hang panels at every divide and in the corner. I would hang them high as seen in the attached illustration.

A bit difficult to see the whole area, the entire window walls but a suggestion would be to "do " drawing, pull up the drapery hardware to the ceiling. Take off the heavy custom valance. But I would not divide each window, too much fabric. Keep the blinds for privacy and install panels of stationary drapery, about 50" or so, not too wide, but wide enough to see the fabric so it doesn't get lost, in a neutral textured fabric at both ends of the window "walls" Also, because you would have the drapery hardware running along the top of the windows, using interesting rod & finials at each end for sure. I really like Restoration Hardware drapery hardware for ideas. I think each window wall should be treated individually, one wall with a panel on one side of the windows and one panel on the other, so in the corner, the 2 end panels "meet", but they are both hung on their own rod, stationary. You will be giving up a bit of window at each end, but it would soften the room so not all blinds and no fabric.

Schroeder Design Group..you misunderstood, which means golfer123 probably did as well. I meant add a single panel where the divisions already are, so the panel covers the 12" or so of wall and softens the overall look. :-)

Thanks, I knew what you meant, too many panels of fabric in my opinion, but hey, it's fun to think about different options !

:-)

Bobbi has the right idea. The fluffy valance doesn't work.

I like the idea of the panels but where can I find nice budget friendly panels at least about 10' long?

Country Curtains has some that won't break the bank. Most longer ones will be online, not in stores.

Try Restoration Hardware too

golfer123...you might try Lowe's of all places!

Yes, Lowes for sure

I bought great inexpensive panels at lowes and bought some extra panels and sewed them on to make longer panels! Looks great. Don't know how to put pics on here (so not computer smart!) but they came out great! Cheap and looks great...what more could we ask for???

This is what I am thinking I might do sew on below the panel with another darker color like color blocking look.

Great solution! Please post updated pictures when you have finished the room.