That room is great! Drape a baby quilt or fromthe cradle....and it is a shame that it is hiding in your sewing room...isn't there another spot in the house that it can shine?
That closet is screaming for some stash.
You could raise the bed up and store some things under it.
I agree with whoever said don't face the wall while sewing. I am much more creative when facing the room or out a window. Maybe a "L" shape sewing area?