I would add whatever your countertops will be on top for a finished look and than add a Big Beautiful fresh plant.

You should wait until you have the house furnished before deciding what to do with that area as I don't think whatever you add to that spot is going to make too much of a noise deduction difference. And without seeing your furnishings and more of the space, it's hard to give you ideas or comment on your idea of basket and blankets.

I'd be inclined to put plants there.

plants would be great. or a large basket or large vase arrangement

nothing too cluttered. just showing this for the idea.

btw, if you're doing a wood floor, maybe consider doing it w/wood as well. (instead of the mdf) If you have leftover planks, maybe do it with that and border the edges w/the white mdf.

or do a cool tile. like something moroccan -ish

like this large floor tile

How,about carpeting ..with the added collection of oversized baskets....this whole area will be a dust magnet of course..so perhaps wood flooring remnants?...something a long handled duster can reach easily

Seems like big live plants would absorb sound as well as the available natural light ...also a little bit of a dusting challenge

A sculpture?