I would start by getting a nice rug, then pick a colour from that for your drapes.

Agreed

It depends both on how you are going to finish the room and what kind of privacy you need. Can you leave it open like it is?

~Lyvonne

I would get woven blinds and hang them right under the ceiling and on top of that add drapes. Hanging both the blinds and drapes will make it look like this window goes all the way to the ceiling. It will also add instant texture and warmth. Sort of like this.

There are a lot of things to consider when looking at new window treatments. Do you need privacy? Are you looking for a blackout shade? Do you like to see out the window or would you rather have a shade that gives you energy efficiency. With that being said, just by the looks of your room, I would recommend a woven wood shade or possibly a plantation shutters. Either would go nicely with the wood finishings you have in the room.

Many possibilities. How about showing it to us in daytime, so we can determine more about the style of the window? Meanwhile, a rug and placing the coffee table 18" from the two sofas would be a good start. Would you like a bench under the window or can it be made into a window seat? It appears to be a bit high off the floor for that.