Yes we need to open the windows a lot there is no A/C (coastal town, ocean breezes!). We can't have blinds with cords of any sort due to toddler safety and as it turns out there are no cordless blind options I can find in 93" and greater widths. So curtains it is! Good point about the air flow, too! I like a double rod with sheers underneath (there are neighbors behind) and room darkening on top for the bedrooms. Now the question is to have them be just the height of the windows (i.e. Hang rod just over window top and have curtain cone to sill) or visually lengthen by hanging the rods at the ceiling and having curtains go to the floor. I generally prefer that look and will do that in the living room (just sheers) but in the bedrooms we may need to place furniture under the windows, in which case shorter curtains would make sense, but may look odd? hamamalis, we just replaced these windows with dual pane low e in the same size (after photos taken). The living room windows face the street this is a city house so no sweeping views here! Reframing walls is very expensive here due to labor costs so enlarging the windows didn't seem worth it. I would have added a window to the right of the fireplace to balance things, but the cost was high. We have a large glass wall and patio slider in the dining area which leads to our side yard, so that's our best view/ outdoor interaction. Eventually we may add a French door to the backyard at the end of the hallway which currently terminates in a linen closet - for more light and connection with the backyard.

I would definitely use curtains. They can be kept completely out of the way when using the door, they come in many fabrics and prices, and they can be washable. You could use grommet top panels on a decorative rod. They are very kid and pet friendly. In addition....I abhor roller shades...:)

I love solar shades for light and heat control and the ability to keep the view . They provide daytime privacy but not nighttime.I usually mix them with drapes for the night. Yes to the same for the window and the slider and there are inexpensive choices for drapes online . Make sure they are at least 2.5 x wider than the rod. Can’t help with color since I really can’t see the space .

Your second option is better. The first one looks like curtains on a stage.