A simple tailored valance would look clean and nice. Drum chandelier over table, flush-mount drum in kitchen and pendant over sink. Remove dried plant wall decor. No arch in the doorway. I don't think trim (crown moulding) is needed, but if you go that way, install it all adjoining rooms.

I would remove those blinds for sure. IF you must have blinds get white ones that can be pushed up whenever possible, and then do as Jillian said regarding the valance.

Thank you both for your ideas! You are great!

If I install crown moulding, it would run through the kitchen too. That would make two moulding in the kitchen: one over the cabinets and one over the wall. would it look weird?

And for the light installed on the top of the bay window, any suggestion that would be a great fit with what your suggested for the table and kitchen area?

P.S. The dried flowers will be removed for sure!