I think two-story drapes in a simple fabric would look fab! Eliminate the chair and a half, pull the sofa back to the edge of the flooring, mount TV above the FP (tilt if needed for viewing,) add two chairs and a table plus art where the TV is now and a console or credenza at the stairwell wall. Paint your favorite color from the rug. Add pillows, accessories in other colors from the rug. Search the box above for two story drape under Photos to see some inspiration.

I agree, I think two story drapes would look fabulous!

Sofa is a sectional so it must remain in its place. TV cannot be mounted it also must remain in place. Any other thoughts?

Also, I tend to think 2 story drapes make it more formal, and we are trying to make it more casual...am I wrong?

There are so many options with this room, but you seem to be anchored to the current arrangement. Are you sure you're ready for a re-design?

The TV and sofa are both new, so really just looking for feedback on curtains and the large open wall. Our previous entertainment center took up way more space so this has opened it up quite a bit.

The chair and a half can definitely go...

Sheri, if you think you may need artwork to bring interest to the space above TV, you can check out our page. Here are some art ideas, in warm colors, if that is what you prefer. And you will find more options here http://ben-and-raisa-gertsberg.artistwebsites.com/galleries.html Best of luck updating your room!... Raisa https://www.houzz.com/products/water-and-ice-red-splash-by-ben-and-raisa-gertsberg-canvas-art-art-print-prvw-vr~3197860

I'd look into some battery operated solars, or sail shades in a cornices box for the top windows. There are tons of patterns to chooses from to fit the rest of your design.