a couple of comfy wicker chairs with a table in between...and a floor lamp. perfect spot for coffee and the morning papers. or afternoon nap, or a getaway reading nook. love it!

Gorgeous room! I like the idea of having a space to sit and enjoy a meal as well as a sitting area:

A chaise or hanging day bed with sheer billowy drapes

It's a lovely room, and-unless I'm mistaken, it looks like you already have a room off to the side that looks like one that serves as a kind of "indoor" porch. I think I would make this into a very sunny library, with some nice comfy chairs-maybe even a small table to sit at, maybe with a laptop, if you have a "wi fi" one. Last, but not least, I'd put a manageable sized-by that I mean not one that needs a ladder-bookcase against that inner wall. The curtain idea in the previous post is also a nice one, or you could just use nice shades or blinds-depending on your own preference/budget. You could do light and sunny, or even a British Colonial vibe-which you seem to already have a bit of in the adjoining room with the fireplace, IMO.
Great space.

A small writing desk added to that equation, and paying the bills becomes more pleasant,too!
It would also make a nice spot for morning exercise.
I have seen similar areas set up for homeowner collections, crafting, meditation and just tropical plants for the cat to play 'jungle' in. Lucky you!