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I really can’t tell you how much I dislike decorative panels , IMO if you want drapes have drapes . nice and full even when closed and you seem to have space for stack back on both sides if you go with drapery that is not too heavy. I am not really getting much feel for the space so can’t comment on rod placement. If the door is used a lot then the drapes need to pull back further on the right than what you have on the left so a longer rod for sure to make sure the drapes clear the door as for the switches you will probably use them in the evening twice once on once off so a bit of a pain but oh well

This may be anathema to some, but in this case I would lower the curtain rail -- but make it longer, as much as you can up to about a foot on each side. No more is needed. I used your existing ones for the pic below but it shows you how lower curtains that you can pull clear of the doorway would look.

Good for you, getting rid of the wimpy curtain!

I agree that a full curtain that can cover the doors would be better than just decorative panels.

I would suggest the following. Do a nice valance above the door. With a sliding door blind in front of the door. This way you have softness around the door and you can close it with the blind door when you need to. Or you can have a Roman blind in front of door. Images of valance and Roman blinds attached. I would just extend the balance ends to go almost halfway down the sides. Or you can bring them all the way down tie them up a little and let them puddle at the bottom as the third photo show.