The drapes and the current shades together do look excessive, I would look into removing the drapes and seeing how the shades look on the windows by themselves.

Roman shades would for sure help capture the look of the drapes without creating so much clutter. Depending on the depth of your windows, they can fit in neatly without sticking out and have the molding be more featured (if that is a goal of yours).

The panels are too close to the ceiling and too long - should just kiss the floor. Widen the rod so that it is 12" wider than the window and hang it just above the window trim

Can't agree more with jck910, The rod is too close to the ceiling, just a little above the window frame would be nice. I would also put the curtains to the sides of the window frame, leaving a slightly larger space in the middle.

Regarding the shades, removing it might be a good idea.

The curtains seem so heavy, I would prefer some curtains of softer and lighter texture, which can make the room looks more sophisticated. I would recommend sheer curtains or linen/Cotton curtains. Here are some inspo, hope it can help!

Why the shades? Lower the rods, get panels with some life, lose the shades. Yes one can add millwork to a window frame but in a living room I don't see why when they will be covered with curtains. Your rods should be hung just above and beyond the frames so the curtains when open stack so you have optimum viewing out and light in. Those shade are obstructing the view of anyone standing. They need to go! The only shade 'fad' has to go. It's tacky, gives a 'just moving in' vibe to your room and loses an opportunity for life/warmth and color in any room.