I like a wood plantation blind or shutter for privacy while still letting in light.

I agree with sam0705 but would add a fabric covered cornice board.

Depending on your budget, a light filtering Woven wood shade coudl give you some priacy,yet still allow some light in. A roller shade as well can allow light, filter view and is cost effective, shutters are a great option but it depends on what you have in the rest of the house.
Connie Valente

A blind, whether it be wood or other fabric that allows the top down bottom up possibility. You can have the bottom covered as much as you need and still allow light to come in through the top.

My next question - the window is open to our great room. The rest of the windows in the great room have levelor off white blinds (not a huge fan - but came with the house and living with them for now)...do I need to match the great room windows with this window? I like the idea of a plantation shutter - do I need all plantation shutters? Thanks for your suggestions.

You have good mounting depth. If you are concerned with matching the great room then you could go with a white wood blind. Hunter Douglas makes them with power tilt feature which would be nice with the possibly limited access. OR you could go with a softer look of a roman shade and pull colors from adjacent rooms.

So far, every idea presented has been great. Unless you see "all" your windows at one time, the treatment doesn't need to match but it should co-ordinate. I like the idea of stained shutters to go with your trim, but we have a very old home with that same trim and it's painted white. If you could do that then white shutters would be great.
I also like the top down feature of Hunter Douglas blinds, and this option is available in the woven woods (which was already suggested) and in other shades.
Chrysteen

@ Chrysteen - our trim looks great from afar but is crap up close so I am happy to paint the trim. We just haven't started yet because it is tedious to paint it, and I would have to paint 5 other doorways in the foyer to make it cohesive. I definitely like the idea of white shutters.

If that's the way you want to go, then just do one opening at a time. don't overwhel yourself.