Bay Window Area Curtains & Decorating Dilemma

OK, so we have started some major refurbishing to our 1895 house.  Yesterday the window guys came for the first time.  They are going to be in and out, gradually getting all 22 of our windows in perfect working order.  All broken glass will be replaced.  All damaged screens will be replaced.  Any windows that don't slide open easily will be worked on.  All windows will be able to latch. All wooden window frames will be in good repair.  All windows will be clean -- which is partly my job (for the ones I can reach, remove, or they hand to me.)

So, as I said, they started. They started on the four windows in the dining room that make up the bay window area.  I am remedial at curtains, so have just hung some long ivory ones on the outside windows and ignored the inside two by placing a huge cabinet in front of them.

A friend is gently pushing me to make it a "cozy sitting area".  So I can no long hide my poor aptitude for window treatment.  What is the fate of this "cozy sitting area"?  I am also at a loss for furniture options, having three cats keeps me from purchasing anything that cat hair would stick to.  Sigh.

Today I worked on the three "loose" windows.  I stained the sides facing the interior, and did brown exterior paint on the sides facing the exterior.  All the time I thinking about window treatment options, and that non-existent sitting area.  No lightbulb moments.