have you considered shutters instead of curtains? these look cool. i think the shutters in the last picture are unusual and a bit crazy, they remind me horse stable windows. if not shutters then if you like privacy in the evening go for some dark curtains, maybe not too "heavy" drapes?

or go for something like this? i have no idea how this "system" is called but it's like a light but sunproof drape on the top and a transparent curtain on the bottom, i have this everywhere in my house and it is very functional, looks good in my opinion.

Aww... you have a pug. I love pugs. But we have three labradors and husband thinks that's enough. He's probably right.
Anyway, that wasn't your question.

Are the windows different heights? Is the one behind the sectional taller than the one behind the chair? For the tall windows/French doors, something like this will be nice. I like the little detail on the top of the curtains that you get when you fold them over and hang them on clip/rings, in a light neutral colour:
http://www.countrycurtains.com/category/100+curtains/130+shop+by+style/138+casual+curtains+and+drapes.do?sortby=ourPicks&pp=12&page=2

Or this:
http://www.countrycurtains.com/product/010150685+banded+bamboo+panel.do?sortby=ourPicks&page=4&refType=1

And for the shorter window Roman blinds like these, in the same fabric as the curtains:
http://www.countrycurtains.com/product/040248682+insulated+woven+cordless+roman+shade.do?sortby=ourPicks&page=4&refType=1#

And would it be possible to turn the sectional1/4 so that it is perpendicular to the fireplace wall?