I would suggest getting rid of the drapes, using shades on the bay window (either bamboo or fabric, and placing a pad on the window seat with pillows to create a seating area. Get rid of the hutch and replace it with a more modern buffet or sideboard. It can be a repurposed chest of drawers that you've painted and replaced the knobs on. Hang a mirror over it. I would also suggest painting the woodwork for a lighter feel in the room. Keep the entire room de-cluttered since it is smaller - just hang artwork on the walls instead of putting it on top of furniture.

You seem to be changing your decor to a more modern and contemporary style. If I'm reading you right, you might want to remove the curtains and get only bamboo shades for the windows. Replace the hutch with a long ,black table like a sofa table and put a mirror over it. Mirrors make a room seem bigger.You seem to have a good sense of furniture and accessory arrangment so I'm sure your room will look great. I see no reason to paint the trim but I suppose it can't hurt.

It sounds as tho you are trying to make your room more modern and contemporary. If I'm reading you right you might replace the draperies with bamboo shades on the windows and no other curtains. The hutch is somewhat traditional -country so you might replace it with a small piece like a sofa table with legs and put a mirror over it. Mirrors always add a feeling of more space.You seem to have a good sense of furniture and accessory placement so I'm sure it will look great when you are done. I see no need to paint the trim but it wouldn't hurt.

The hutch is probably 2 pieces; so remove the top part and keep the lower part as a buffet, but paint it in a new accent color, like a green.
Paint the walls one of the new tans/beiges and get matching drapery panels. Target has a nice selection.
Replace all of the dated accessories with some new ideas from Pier 1, for example. Look for large accent pieces for the window sill, but don't clutter the space with little items.
The room is already nice and only needs a few updates:

1 get rid of the clunky bulky hutch. replace with a buffet type table or a piece thats functional for storage but not so bulky. consider putting the family pictures on the new piece if must have in there but get rid of them from the window area.
2 get lighter brighter light fixture and raise it some
3 for sure replace the plaid drapes. a lighter pattern is needed. Your style is def on the traditional side so paint the walls with a color brought in from the rug or decor that reflects your chosen style.
4 add some brighter artwork. but don't bulk up the frame.
That's what I think would help. Good luck and have fun with it.