I would go with curtains/drapes to the floor, since I have an aversion to shortie windows in living rooms and dining rooms. Brushed/crushed voile, pinch-pleated maybe?

Both.

First, I would go with inside mounted Duette shades that match the color of your trim. get the top-down/bottom-up feature for even more flexibility.

Move in and get your furniture arranged.

Then buy/order curtains. Since you have the blinds for privacy and light control, you only need floor length stationary panels for color and to soften the room.

Blnds. I don't like curtains on short windows. If the curtains go to the floor they look strange. If the are short they look strange.