A tension rod could hold up a lightweight curtain for the "hidey-hole" area.

Old bedsheets make quite decent curtains, sometimes. Find a nice print or solid flat sheet at your local thrift store, use the top edge fold of the sheet to shirr onto the curtain rod, measure the length you need, then snip an edge and rip across, staple if you're concerned about raw edges (though percales usually don't fray much), and you're good to go.