I quite like your suggestion.
However, we do imagine that light should come in through the living room (south) window. The roof is not lowered here.
Isn't the exterior also ruined if you just paint over the south window?
Regarding the statement "sofa not under the window if possible": I also don't like a sofa with its back to the window, even if the window is floor-to-ceiling, so I like your suggestion. Compared to mine, it also has the advantage that the room remains open, which was my husband's wish. However, I am not sure if we will paint over the south window...