I personally would want those interesting windows to show during daylight. Hence, I suggest one wide drapery hung just above the lower windows but on a rod wide enough that the drapery when open doesn't cover any window. I'd probably choose a drapery color the same as the wall color.

I agree with Yvonne. You need to move the rod down so the top half moon is completely visible and as wide as possible. It doesn't look like you have a daytime privacy issue. Maybe look into having a film applied to cut the UV rays for daytime and then not using sheers at all. Unless it's a southern or western exposure. I have a large window that faces SW that I have both a film on and blinds because otherwise the afternoon sun is blinding. Unobstructed sunlight will fade your upholstery and change the color of wood floors and carpeting over time.

I think you should square off the carpet and furniture, so you only have the fireplace at an angle.

I would want visually more substantial rods hung half way between the arch and lower windows. That way the panels (only two needed) could be hung properly to allow all the light to come in. If the windows are no longer under warranty, you could use UV film on them if sun fade is an issue for you. However, adding film to windows under warranty will invalidate it. Panels should kiss the floor and the sides of the windows, but yours won't be to the ceiling.