Panels on either side of your windows will definitely make a statement, and help the room to feel a bit more complete - You could stay fairly neutral with the panels, and add a banding, or trim that incorporates some of the Navy blue - or you could add some pattern on the drapery. More photos with the other elements of the space will be helpful for more specific suggestions.

I agree that a neutral panel close to the wall color with a navy banding or possibly a neutral with a navy color block would be a nice choice.

I like these a lot, but I also have some suggestions if you want more pattern or more simple. (I don't know what budget you have, so I figured Penney's was a safe choice)

http://www.jcpenney.com/p/studio-quintet-lined-grommet-top-curtain-panel/pp5006000340

http://www.jcpenney.com/p/duck-river-textiles-kittattinny-2-pack-curtain-panel/ppr5007254697

http://www.jcpenney.com/p/crackle-grommet-top-curtain-panel/pp5006710347

http://www.jcpenney.com/p/jcpenney-home-cotton-classics-solid-rod-pocket-curtain-panel/pp5005910172

Loving the totally plain look! Thanks everybody. Would you guys leave the blinds or get rid of them?

@beverlyfladeziner Could you share where both of those images are from?

Do you need the blinds for privacy or sun protection? I rather like the layered look.

I like the blinds as well. They add a little warmth to the room.

No, we could get by without the blinds. Thank you for your thoughts! May have to buy new mounts that we can inside mount properly (we moved in with the blinds like this).. that would probably look better.

If you change to inside mounts, won't you have to have the blinds cut to fit?

oops that was typed oddly.. yes i assume so @katinparadise

I know that is a somewhat casual look, and I'm strictly amateur, but what about a table with some dark wood and glass and/or some brushed brass?

I have those chairs but with the dark colored frames. I adore them and added lumbar pillows. I would leave the blinds but add drapery for a softening effect. I think that if you used a natural off white color drapes it would look great if adding some lumbar pillows to also soften the edges. Ikea has Merrit drapery that is $34 a PAIR with a width of 100 inches. They are cotton and look fabulous. Just my opinion.