Photos do not enlarge. Cannot see the room very well. Reasons to keep DR where it is: U have a chandelier for the DR table, it is probably near the kitchen. But try it and see if U continue to like the new arrangement. I think the door and bannister would be nice in the BM color.
Good to use a floor plan before moving furniture: http://www.ehow.com/how_7244848_set-room-layout.html

I just noticed that you said that you painted the room if you like red you could add some red [houzz=]

Dragon's Breath, which is a nearly black brown, should be fab on the front door and the banister. It would make sense to move the living area to have the view out the windows, if I'm understanding this correctly, since the DR would mostly be used at night when a view is not important.

So, regarding your original question which was about what kind of window coverings should you use,
I think that a natural linen look, be it natural linen or not, would be wonderful on stationary drapery panels on each side of your windows. I'd hang them from 1" iron rods hung just below the ceiling, and the drapery panels would gently brush the floor. For privacy, I'd use wood blinds or Silhouettes for flexibility, or grass shades for character and texture.
Carolyn Albert-Kincl, ASID

Silhouettes would work amazing for the space it will make the space softer and more formal looking. I would also recommend a decorative rod mounted 6'' above the window with 2 drapery panels to frame the window 24'' wide .

http://www.blindsdirectcanada.com/blinds-toronto/hunter-douglas/silhouette-toronto.html

http://www.blindsdirectcanada.com/drapery-toronto/panels/grommet-drapery.html