Here's how this part of the room could look, with built-in cupboards below the shelves, cornicing and the fireplace painted white. A central chandelier would look good too
Period Window Dressing Ideas from http://www.classicaladdiction.com/2011/12/more-period-window-dressing-ideas/
I like the idea of some paint on the ceiling. -Kat
Art Deco Wall Corner trim - great idea to layer wood trim pieces just in the corner.
Window Seat - Living Room Design Ideas & Pictures - Decorating Ideas (houseandgarden.co.uk)
Another closet curtain idea - instructions included. This for our guest room closet. Looks like the way to make the cornice idea work
Cornice melds with Ceiling Crown Molding idea - will hide traverse rod with sheers nicely!