Wow that's a tough window to work with. Is privacy a concern? If not, I'd probably put bamboo blinds on all of them and forget about fabric in any form.
I don't care for having curtains blocking the bay window, so I would go for shades of some type in all the windows. I also could see doing a valance like callmefia said in addition.
I would go with bamboo blinds on all of the windows, and panels (dummy or real) on the walls between the small windows and the bay, just to soften it a bit. I am not a fan of valances, so I wouldn't go there, but that's just me.
My thought, to unify the look would be to hang the bamboo or matchstick blinds in each window and then do a floor length panel at the sides of the smaller windows and sides of the bay. They don't have to be functional, but would anchor the 3 units as one look.