Thank you all. We've talked some more here and the bedroom nook is the current plan with the possibility of adding the storage space in a year if we need it. I did some sketches of possible layouts but know that I'll have to live in the space before I know what'll work.
While reading your replies, I was reminded that once we had an empty nest, at our old house, it was harder for me to go upstairs to my room there to sew.
I appreciate your responses.