I would go with bamboo shades for privacy and curtain panels for decoration.

Simple but elegant roman shades!

It really depends on what you are looking to accomplish in a treatment. Blinds are great if you want something that's going to be down most of the time and tilted open and closed. Shades are great if you don't need something to tilt open and close and just want filtered light and if you want visibility out, you raise the shade up. I would stick with a blind or shade and not do sheers because of the nice craftsman style trim work. Sheers will hide that beautiful trim work.

You don't have enough wall space to do draperies; plus they would cover up the beautiful trim.

I would recommend doing inside-mounted fabric shades. Fabric will help soften the windows and bring color/texture/pattern in the room. In bedrooms, I strongly encourage customer to consider room darkening fabric for sleeping.

If you wanted a crisper look, then white wood blinds would be a good option.

Thank you everone! I decided to do white wooden blinds. We want to be able to blockout the light. I like the idea of a roman shade, but I also want the flexability to change my bedding and not worry about changing out expensive custom roman shades as well. I really appreciate all the help!!