You should have minimum 5 ft but 6 ft is ideal. I've played pool where tables are 4 ft from the wall and it is too close. The standard pool cue length is 57" and the draw length is about 6" so 5 to 6 ft would be ideal.

Well, we do medieval and olde worlde so I suppose country or rustic, at present.

An entire wall of built-in cabinets and hooks and cubbies for your crafting stuff (and perhaps filing-type stuff and printer for the office). Take a good look at what you have and think about how best to organize and store it and what could be displayed to be pretty and what should be hidden behind curtains or doors. A fold down ironing board on a wall or back of a door somewhere would be great. A nice desk and filing cabinet for the office side... or perhaps a great big table in the middle under the window, wide enough to function for both of you facing each other? A nice curtain rod would make a big difference too. Preferably just about floor to ceiling. I'd put a splash of colour on the walls and keep the curtains simple, but you could go vice-versa too. Something like this: [https://www.houzz.co.nz/photos/modern-bungalow-phvw-vp~4999540[(https://www.houzz.co.nz/photos/modern-bungalow-phvw-vp~4999540)

I think, like you said, due to the fact that there's a larger space when it comes to the hotel lobbies is the reason as to why it works. I think that no matter what you put on the walls (whether it be concrete or marble) will result in tiles not working out. The industrial look tends to be exposed brickwork anyway, or cream or white colours so maybe that's an option you could look into. What did you end up doing?