Do you have a floor plan? Where is the dining in respect to this space? If you don't need dining space, perhaps a couple of accent chairs with a small round table as a gathering spot? Or a single chair with small ottoman as a reading/break chair near the window?

I would close in the top half and use it for storage.

I would do as Lyn suggested or at least remove the shelves and showcase some art on the walls.

To create the feeling of a destination vs a walk through, add a rug.

Could add a chair and plant, or a desk by window.

Improve accessories on shelves for more interest and consider increasing its usage with a coffee station.

It looks dark and hard, so I'd change things to make it look more inviting. Take the shelves down and add a large, colorful piece of art. Add a roman blind and rug to complement the colors in the artwork. Change the hardware so it doesn't look so "kitcheny". Add a smaller chair and table/lamp by the window. Add plants.

Nice idea for coffee/tea station.

The same for dry bar.

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With lights under shelving

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