Yes

yes what?

Yes, do side panels on both windows, even if it falls behind the headboard. Do some sort of blind, or black-out shades within the window frames. Hopefully, you are removing the carpet. I think it could look great with wood floors, and a puddled bottom window treatments.

I will never do curtains again even though I think they are usually very pretty to look at. I have switched my entire house to Roman Blinds and love them. They do not attract dust and are unbelievably simple to keep clean. If you don't have any allergies or pets in the bedroom, I say go for the curtains and yes, they can go behind the bed. If you want to keep everything dust free and clean, go for Roman Blinds. Or you could do both but you'll still have to keep those curtains washed/vacuumed. Either one would look good.

Hang ceiling to floor drapes on both the window areas. Get room darkening ones if you don't like the A M light. Check Ikea for good prices. Even white ones can be room darkening. I hope your bed has a headboard. If not, think about making one & pull the bed away from the drapes just enough so the bed does not disturb the drapes.

I would buy a white outlet plate for the one that is on your wall & remove the mirror. I like the soft relaxing color of your carpet. Place unmatching bedside tables on each side of the bed & add matching lamps.

I should have mentioned, floor is dark hardwood now, painted gray with a hint of tan.

Amy, I have similar windows in my home - higher up and horizontal. I would suggest both a roman type shade and drapes. I prefer floor length drapes, but I have some challenges with placement of heating vents. And, depending on room and furniture arrangement floor length can look a bit odd with these sized windows. Hang the curtains ~4-6 inches above the window frame. Also, if you are not centering your bed under the window, you can hang the rod centered and adjust the drapes as an optical illusion. Good luck!