The first thing I would do is remove the railing. That's what's making it look odd!

Fill it with a big fig tree and maybe some trailing plants if you get rid of the railing.

If you want to spend the money, you could remove the whole corner (reuse to paneling) and use the space for a coat rack.

No to hanging jackets , really. Remove the railing it makes no sense add anice big real tree or plant and be done. I agree you need a place to hang coats but that is not it.

looks like a place for a pedestal and statue like in a church

Definitely remove the rail. It looks like a pen to keep naughty people out. I think it will be awkward to actual use in terms of coats, books or sitting, and think the idea of a large plant like a fig tree best. With a window there, it will actually have a chance to thrive.