It would be a wonderful place to hang a stained glass panel -- because it could be centrally hung, it could hold the space well without being huge.

Ugh, these are so hard to work with! Here are some ideas:

No to the stained glass as the niche is too deep and stained glass is not three dimensional.

Some type of sculpture or art glass might work for the space. You don't have to spend $$$. Sometimes 'found' objects will work for a niche like this.

I love Rina's suggestion of a stained glass panel and I see why she made it with the niche lighting. You don't have to buy a traditional piece - stained glass comes in all styles. Look on Etsy - there are a lot of stained glass artists offering all kinds of pieces. I like the transom in this picture and you can find panels on Etsy which are similar to this.

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