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Cynthia Taylor-Luce Rather than accentuate the awkward space by putting something decorative in it, I would look into closing it off and finishing the wall to eliminate the niche.

cohoek Hi, I would put in 1 or 2 wicker baskets, for storage, or antique picknick basket.

zenhome I would be inclined to put decorative baskets in that space. I think they would look great and be functional too for extra storage. I would not go to the expensive of closing up the space.

Interiors International, Inc. I like the idea of storage but would use really nice boxes instead of baskets. These would be a bit more formal.

zenhome Yes, Interiors International I agree decorative boxes would be a nice option too.

janishill Antique suitcases could make nice storage containers, then boxes, or baskets.

You could put an uplight behind whatever you use if there is a plug nearby. Just run it down behind the door along the trim work, then along the floor.

michalin You could put there a plant and candels to light it up , also a little lamp...

decoenthusiaste No to candles - don't burn down the house. Try the battery candles.

Natalie Some ideas... :)
[houzz=Bird Cage Bookends By SPI][houzz=hearts][houzz=Rooms to Inspire by the Sea by Annie Kelly beach homes houses]

Peg Silverwood A beautiful Clock positioned on an isle with a wonderful large Glass bottle in a unique shape sat on some large coffee table books next to it.

Welcome Home designs Here's an interesting option - check out this light box.

Welcome Home designs Another thought- a stained glass window - lit from behind might look quite nice. I wonder about the wiring that will be involved however.

Welcome Home designs Oops wrong photo for above comment