I'd tile it and treat it like a bar. Get some new pulls for the drawers and a tray with bar accessories to sit on top.

The blinds aren't terrible. :-) But you could do something different. Here are some pictures of bars which is a similar concept to what you're doing. I would do wallpaper as it is easier to remove later when you want a change. There are so many options. Bring home some samples and see what appeals to you. You don't need to cover a big area so you could get something expensive that you wouldn't usually splurge on. I can't tell from what you're showing how much you like color. You can keep it low key or make more of a statement.

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If willng to give up the middle window -

Permanently: dry wall, add large art, accessorize and update hardware and consider painting.

Temporarily: remove window frame and add a large enough mirror to cover. Smoked glass would be a nice choice and update cabinet to suit.

We think tiling the area might work well. Here is an idea from a design of ours that might spark some inspiration.

West Coast Modern on the East Coast · More Info