Add a full wall (thin offwhite/natural cotton) curtain and drape it towards the right, so it will partially cover the door and never touch the fireplace. You could keep the venetian blinds underneath, but I guess sheers (two rods on door, top&bottom) will look really soft. Roller blinds are smooth, so may look better with the draperies.

Actually I think your current look is quite nice. :) But, some other ideas --

Thank you! The blinds or a curtain are necessary for privacy(public stairwell off of the balcony) but I need the light. These look good.

barbron, you're very welcome. Please keep us updated with more photos of the progress? :)