Can you take more photos with some added light? The ones here are so dark, I can't see. :) am installing a dining banquette in my gutted house. I think your bay window would be perfect for that. Thre are many many DIY options for creating the base for the seat. Do you really want a rug or are you using the rug to tie the colors of the curtains to the rest of the house. I think you could do that with some different coverings on your chairs. and the cushions on a banquette could help with that as well. I like clean looking floors as I see here. Are the drapes brown? What is your secondary color?
You need something bright and colorful.

Are these any better? Gheesh, one thing is apparent...we need a bright light!

The curtains are blue and white. The living room rug (right next to the dining room) has red stripes.

Given the proximity to the red rug and the pattern in the curtains, I would just go with a simple sisal and it could have a blue edging. If possible, I would change the blinds to bamboo and add an antique dough bowl as a centrepiece. Will you be moving the table into the centre of the room as that will effect the lighting's height, or will you be using a chain, so it can sit over the table?
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Maureen you are amazing, thank you! Yes, we are planning to swag the light. I'll look for some similar blinds from Ikea or something. Thank you so much!! Now onto the art work lol