So many things you can do .... a large painting, a collection of items, a console with art above, gallery wall, etc.

I probably would not do a bookcase because of the possible conflict with the window and railing.

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"the enormous blanket wall"

Your question contained the answer: a blanket or other textile. Your views and fireplace are awesome. You need something that will not compete but will do justice to the height and enormity of the space.

The second pic is made from Ikea rugs! Find colors and patterns that speak to your taste and home.

Yes, a blanket or a rug! A friend had a kimono on such a wall, but the home was a very different style than yours.

I’d do a credenza that you love - whatever style that is. Then either one lamp in the middle or two matching on the sides, and style the top of it with beautiful books and a plant or sculpture.
For the wall, you could do one of 3 things I think:

A piece of art that you like
A mirror to reflect your beautiful fireplace
An earthy textured textile that speaks to you

To offset the rising ceiling, I’d just make sure everything is very centered and uniform to appeal to the eye.

Depending on your style: mcm, farmhouse, modern, etc it could work and you could even add a chair and a reading lamp (instead of a lamp on the table) to make a reading nook “look”

IMO a fab place for large piece of art .I guess it could be quilt but not my choice. BTW I happen tp love my huge stone FP too Maybe along console table under the art for a place for another piece of lighting.

It looks like a great place for either one large piece or artwork, a console table with some artwork over it, or a home bar area. Here are a few visuals to help you more.

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