Catherine the panel blinds could be your solution. They are available in sheers, patterned, mixed etc and operate on a track system. It's an update of the verticals that a lot of homes have. If you have Ikea in NZ you could sus them out there.

I think the white trim gives it a much more contemporary look. It's more work to have it done in a different color, but the overall look is cleaner.

Any rod will work that does not have decorative finials. A U shaped rod. I would prefer sheers and drapery that go to the floor. But you can use what you have also. A roman shade can take the place of the sheers and mounted inside the frame. You can use ring clips for the drapes for easy opening and closing. Thank you for the new photos.

Looking at the bench , I assume that aged look is what you are going for ? How artistic are you ? I'm thinking you'd carry on in a similar vein -- paint the trim in white , but while its still damp ( so within say 30 minutes ) dab on some off-white and even buttery cream , using a sponge , in a bit of a 'rub' pattern . Likewise , I quite like the faded blue jeans look on the sill -- thats a bit harder to do , but maybe a cream base , then thin the blue with turps or water , and also sponge it on , but basically in solid rubs , like you were nuggetting your shoes .