It would help to see the entire space/style for suggestions. But, my first thought is shutters you can open and close.

Budget would matter. If mine, I'd try installing a rod inside frame - hang semi-sheer only within the frame - heating?

Shutters like these!

I would do roman shades so at least during the day you could have some natural light without blocking 1/2 of it with shutters.

Brielle Home Seacoast set. The lined panel and optional valance, constructed with rod pockets, are made with a solid-textured, polyester-linen blend that is machine washable. Sold by Overstock.

https://www.houzz.com/products/brielle-home-seacoast-window-panel-or-optional-valance-prvw-vr~6652623

I think was suggested - softening floral? just a photo:

https://www.houzz.com/photos/traditional-living-room-traditional-living-room-phvw-vp~12578860

Hey There: Do you really want to replace these blinds? They give you everything you are looking for - privacy and light management with this bottom up top down operation feature. Additionally these blinds fold very small and don't block your window (shutters and roman shades take away so much of the window with an inside mount). You just need to add some color...

Hi Anjelica! I love using Roman Shades in that type of window setting as long as you don't mind blocking the top part of the window. My other suggestion would be the Hunter Douglas Silhouette. They are an elegant soft cloth with sheer sides.