I would put a cozy little chair down in that dormer, with a floor lamp for reading on a quiet afternoon. Otherwise, maybe a steamer trunk for storage, with something decorative on top. I'd want some kind of art on the walls to either side, though -- it's not really an issue of competing with your bed so much as giving you something to look at from there! Looks a little tight for a chair, although maybe a narrow padded bench just for socks and shoes...

I would probably put a dresser in the dormer. Another idea is a window seat.

Room is very cozy.

There can be more than one focal point. As seen above.

I would put your artwork on the walls across from your bed. For the dormer, rather than trying to "decorate" it, think about how it can be useful to you. Maybe a small desk, a reading chair, a small library, a bench, a dresser, etc.

Really like the images with narrow spaces. that helps a lot. (particularly like the window seat) thanks so much