This is the perfect place to put a pull out bed! I always look at those beds and thing they're impractical because it's too hard to leave all of the open floorspace needed for one but I'd happily do it for this library/reading space.
Free Book Report Printable - Great for lower primary grades. It also could be a nice idea for a summer activity to keep the mind working. I like the idea of creating a sort of ongoing binder tracking their fave books over a period of time.