Sounds like a great idea to me. I'm a home stager, and 9 outta 10 homes I stage have what you have now blinds or shutters. But 3 panels would make the room look more relaxed. Right now the blinds make the room look to busy. Good Luck

I really can't hang a drape panel on this side of the window because the bookcase cuts into the window frame. I hope this photo shows the problem better.

Your stated goal is "softening the room". I think it will be difficult to get there with window treatments because of the asymmetrical windows which will only draw more attention to them no matter what you do.

I'm wondering if the issue is really more about a style clash in the room. The mill work and especially the paneling effect is very formal, but the furnishings are much more casual. Even rustic (see coffee table).

I think lightening the wall colour thereby lowering the contrast between walls and trim would make the space feel less chopped up and allow the walls to be more of a neutral backdrop to the furniture. This would help eliminate the look of a stick coming up the back of the TV which is a bit diverting. A colour like the soft ivory in the upholstered arm chair would be a suggestion. Eg. Benjamin Moore's OC-9 Ballet white.

It is hard to tell from the angle of the photos, but it looks like the area carpet needs to move closer to the sofa, which should have its front legs at least on the carpet. Additionally, a new larger, perhaps round coffee table to replace the narrow, rustic existing coffee table would also be a suggestion.

Fabric romans inside mounted can soften and cozy up the room as well as drapes can.

There`s enough going on around the windows. Don`t add drapes or Roman shades. It`s not needed and won`t look good.

Lovely room. I have two suggestions.

1. Your windows are perfect for plantation shutters. I just don't think drapery panels will every look 'right;.

2. Have you considered placing the sofa in front of the windows, the two lounge chairs opposite the sofa on the other side of the fireplace and the TV directly across from the fireplace. That might soften the room appearance.

Add some texture with art between the windows and a large plant in the corner.

Is that soffit just for the can lights, or does it house HVAC or other essentials? It would be a much larger project, but have you considered removing it and installing the cans in the ceiling? Or is there an issue we can't see that prevents doing that? I'd think about removing the vertical trim boards on the walls above the wainscot and redoing the walls. There really is an overload of trim in this space. I like Beverly's idea for moving the furniture too.

@decoenthusiaste

A few posts back, Elizabeth Minish Design had a much more cost effective solution than removing the vertical boards: reduce the contrast with paint.

It's a lovely room with "good bones" as the saying goes. Although the furnishings don't reflect it, I get a wonderfully cozy British Colonial vibe from the room.