I think the first contemporary option you pictured looks nice. That said, I'm pretty firmly in the no valance camp. I like breathing room around windows and tend to prefer them with no coverings when there are adjacent cabinets.

Though I lean to a more simple look, I would keep the one you have up now and see what it looks like raised up to just where the bottom covers the top of the trim and upper portion of window.

I like a valance to add color and softness and it can help express your style. The gathered valance is not as popular in design circles right now though I see plenty of them in actual homes. If you want a more in-style look, do a faux roman shade or tie up shade - both not too hard if you know how to sew - but there are also some "no sew" tutorials online.

Faux roman shade: