I think you could use slighly larger sconces that are a more contemporary twist on traditional and catch your eye like

Do you like something like that? For window treatments can you leave it open to let in the light? You could treat it more architecturally like in this space: https://www.houzz.com/photos/outdoor-landing-phbr0lbl-bl~l_152158

Thank you, the sconces are a good suggestion! As for the window, should I place a small bench in front?

If you like the idea of benches and it isn't too crowded to walk by them (hard for me to tell from the pic), I think it would look good to put two on either side of the window, flanking it. Perhaps something simple with an upholstered seat. I think this would draw attention to the window nicely and not compete with it, and fill in some of the empty space below the sconces.

Thanks again! I like your ideas...

I would do stationary drapes in a nice printed fabric pulling from the colors in your runner. I'd make sure there were mounted 4-5" from the window trim so that you don't really cover the window and still let light in. Benches would be ok if you have the space or what about two carved chairs with beautiful upholstery?

I would only do a cornice board or valence above this window to make it appear taller, but blinds and draperies are unnecessary here as the light is so nice.

Thank you all for your suggestions!!