This is the perfect place to put a pull out bed! I always look at those beds and thing they're impractical because it's too hard to leave all of the open floorspace needed for one but I'd happily do it for this library/reading space.
All the hammocks all the time. In a room for reading, an elegant hammock puts in a surprise appearance over a Moroccan Beni Quarain Rug. Vitsoe shelving and a Studioilse Low Bench that can be used as a step stool maintain organization across the wall.