Nice space. I'd leave the rug in the living room and put one under the dining room table with color and texture you want. Put pillows on the couch for pattern and texture. Then decor on dining room table. Window treatments after the rug and pillows. Do they need to just hang on the side or actually we used to close.

I would get white linen panels and hang them just on the sides. Nothing on the small windows on FP wall. Agree with roswellqs keep LR rug & get one for DR