Perhaps a series of art or black & white images, all the same size, all hung at the same height with appropriate lighting?

http://houzz.com/photos/103384
Maybe like on the blue wall in the attached image?

A bench on a long section of wall, and either artwork or family photos would look great here.
Carolyn Albert-Kincl, ASID

Love the suggestions made by Carolyn; moulding around the the top (between ceiling and walls) would be elegant and give dimension. Getting an electrician to move what appears to be the thermostat is essential for placement of pictures....the pictures above are beautiful!

I don't care very much for large numbers of family photos in the public parts of a house but I think this area would be great for such a project. There would need to be some element of continuity I the framing or the sizing or the production to make it work.

Thermostats in the middle of walls should be forbidden. However, there it is and it should be easy to hang pictures around it.

A Toronto designer did a garden themed hallway, you could scale it to any budget, I thought it was very different, spectacular.

Beautiful area. Please post your progress.

You certainly have room for a library there and I see a pair of demilune tables or consoles flanking that large opening, topped with sculptures, floral arrangements, lamps..., Don't see any electrical outlets in the pix. If you move the thermostat, you might want to see about adding an outlet either side of that door. However, sculpture and florals won't require moving the thermostat and can cover it somewhat.

Like the photo of Crisp Architects. How great would it be sitting there with a book and a drink, looking down into the lower floor.

Thanks for all the feedback! Hoping to get started after the holidays. My 9 yr old daughter decorated the railings, lol, and doesn't want me to take them down:)

I finally got started with my project!

One more:)