Depending on your budget, I think tray ceiling are gorgeous: [houzz=]
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This is when decor is all about personal preference. Generally tray ceilings are like nails on a chalkboard to me. Even though sometimes as in the living room above they look fine, they just bug me. No real rationale to it; they're just not my thing (can't stand high profile vessel sinks either). But a lot of people like them, so it's really up to what you like, your budget and logistics.

K B, I totally agree with you. I had a great room with a coffered ceiling once and it felt like it was coming down on my head. It was painted a very dark color, though, maybe that had something to do with it! (Not my choice!)

@olldboobi--Design is funny that way. I've had terrible experiences with (cheap) marble and (inexpensive) ceramic tile (both were pre-existing in a home I bought), and I won't even consider the good stuff. Don't care how beautiful marble or ceramic can be--it's been ruined for me.

I was going to say use much deeper crown molding but then your windows are in the way. I'm not sure what you're trying to accomplish. What are you unhappy with? You possibly need to lower your ceiling fan about 3 feet but it's hard to comment when you can only see the ceiling. The only other advice is the ruffled valences are too frilly and small for the size of your windows and the room. Hope that helps.

Yes! No marble or granite for me, or anything that is overdone!!! And never, ever again a dark ceiling. When I finally painted that puppy a light blue it was like the room was twice as big :)) But in regard to tile, I do love the glass tiles:))

Since your space leans a little more toward rustic, you might want to consider false beams.

On one project I built a 3/4 box beam out of pine 1x6s (3 boards joined on the edge to form a "U" in cross section). Then I roughed up the outside faces and slightly rounded the edges with a chain saw. To finish, I rolled on some dark stain (this will take many, many rollers).

When fastened to the ceiling, the beams were so realistic that the client didn't believe they were fake.

This is about as cheap and easy as it gets. Especially if you have 10' ceilings and your existing decor permits.