i think some kind of plant would be nice. something tall with a thin trunk so that the top of the tree doesn't interfere with where your head rests.

What about a fabric L-shaped bolster mounted directly to the wall? It would only stick out from the wall slightly and you could add cord holes in the top (ledge) surface to accomodate wiring. Or you could make it a single L-shaped bookshelf - use materials that match your existing shelves, but build it into a box shape so there's a top (for electrical stuff), sides, and bottom (to hold the books/decorative items).

We had a phone jack right in the middle of the wall in our living room that I took off and replaced with a cover plate painted the same color as the walls. Once an eye sore is now hardly noticeable.

a large plant would be nice

I have a similar problem in my house. Some former handman/owner installed power outlets half-way up the wall wherever they felt like it throughout the house. I deal with these in different ways.

What I think would work in this situation is a triangular shelf/table thing that fits into the corner and against the back of the sofa. Then, you can place baskets, vases, discretely leaning artwork - whatever you want in front of the outlets so they are easy to access, but not a focal point.
paint/fabric/whatever with or without a glass top.

Also, though I normally dislike 'disgused' outlets, painting these to match the background would help a lot, too.

i would set a triangular shelf right in the corner, resting on the lip of the lower wall section, finished in the same way as the bead board you are installing. set the phone or a small plant in front of the outlets, add a decorative piece or two and paint the other outlet cover to match that dark wall.

Oops, something got deleted - what I meant to say was a simple piece of mdf or plywood cut to size with 3 legs from the home store could be covered with paint, fabric, or whatever you wanted - with or without a glass top. Depending on your style and budget.

I like the plant idea. I think it would fill the corner and obscure the outlets without competing with the shelving on the adjacent wall. As for adding a surface, could you build a larger window sill onto that window? Something that looks architectural maybe?

1: A plant.
2: Extension cords so that the phone can sit on an end table

Since it looks like it would be such I nice area to read, I would probably put lamp in the corner. If you used an overhanging floor lamp, you could try to look for one with a built in shelf.
If that doesn't work for you, my suggestion would be to have a stand that is not necessarily visible to hold the phone and accessories and then place a reading lamp on top.

For the outlet. I would paint the cover the same colour as the wall.

Side comment: How do you plan on slip covering the sofa because I found the exact same sofa and I've been wondering how to cover mine on a budget.

It sounds like you're pretty handy - so I would personally try to build a nice plywood shelf behind the entire couch that rounds the corner - either attached with L-brackets, or made with legs. Although the inclination would be to put it at the height of the little recessed area, I think that is too high and people will bump their heads. Instead, I would put it just below the level of the back of the couch. Painting the outlet the color of the wall will also help.

Or if that seems like too much effort, something like this could work.
http://www.overstock.com/Home-Garden/Anerucab-Red-Oak-Mission-Accent-Corner-Table/5016953/product.html

Can you also paint the supports for the shelves? The bright metal could be disguised if it were the same color as the wall.

I second mrsyow and home body. A triangular-shaped shelf would sit nicely on the lip, and painted the same as the beadboard would blend well. A plant or a tall framed something leaning against the wall could mask that light-colored switchplate (outlet).

Additionally, though it would be a pain, I would take the shelves off and flip them so that the brackets are on top. You can use the same wall holes, so it should not be too difficult. This will simplify the lines and move the shelves down a little so that the isolated outlet is not such a glaring flaw on that very open, wide gap.

since you're asking my suggestion:

1/ cut back the length of your shelves so that they don't meet up with the window wall but stop at and allign with the 'down' pipe on the ceiling (which also nicely alligns with the direction change of the sofa). this will create more space on the wall to do something interesting with and unify the wall with the sofa making it look like it belongs there a bit better.

2/ large-scale artwork, a mirror to bounce around the light or a cluster of 3 nifty photos where the shelves used to be (one of these pieces could cover the outlet)

3/ window wall also art/photos - without the shelves there, you can put up some good sized pieces.

4/ a sunken (4" ish) triangular shelf or table for the corner to put your phone, reading lamp and appropriately scaled plant on (handy for beverages, too)

5/ move the outlets to somewhere you find them convenient. really: a short visit by an electrician will save you money and headaches doing camouflage work. you can then fix up your drywall BEFORE re-painting. (fill the holes from the shelf etc. too.

good luck Tiffa!

I'm with *bepsf*. I'd keep it simple in this senario. And I suggest doing the same color outlet cover as what you are painting the wall to disguise them, if you wish.

Thanks for your input everyone! Tiffa, here. I'm doodling ideas for a corner shelf, but hadn't really contemplated a nice simple plant or lamp on its own... if I can find the right one, that might just be the way to go.

I'd love to move the the outlets, but I don't actually own the place, and there is nowhere for them to go - tiny space, foundations around all the walls.

The wall/bookshelves behind are fairly crucial to the apartment, although I agree that cutting them off and putting art on that wall would look great. There isn't anywhere the books could go instead, and I'm not willing to sacrifice the shelving: although I appreciate good editing of a space, I read those books endlessly, and really love to have them out for others to peruse. Also, I think having the celing pipes, the division of the couch sections, and the end of the shelves all lined up in the same spot would make the room look sort of strangely awkward or divided. The long shelves really define the room.

And, to Victoria in DC: I was planning to sew a simple slipcover myself, or potentially reupholster the couch. It would be a big job to slipcover, size-wise, but because the lines of the sofa are quite geometric, it wouldn't be too complicated. There are lots of tutorials online on making slipcovers ... if that's the route I go, I'll slipcover each section body on its own, and then each cushion, in something fairly sturdy that will have a bit of structure. Maybe a nice wide wale corduroy?

Thanks again, everyone ... I was hitting a creative wall, and needing some different eyes.

I love that sofa, slip-covered or as-is. It's all win.

"I'll slipcover each section body on its own ... Maybe a nice wide wale corduroy?"

Not a great idea for a fabric - Linear patterns & textures on sectionals never work out well, and are incredibly difficult to align if you're not an experienced professional.

Stick to a solid fabric, such as a microfiber or velvet, and you'll be fine.

Plant stand fern in a cool planter pot in the corner gap. Fern will also help hide the odd outlet! Wall mounted phone next to the odd outlet. Add some smaller framed art above the sofa and use undercabinet spot lighting to highlight/add light to the area. (try dioder by ikea...LOVE them in our kitchen and the LEDS make them cheap to leave on all the time...and we do!)

OOOh and if you wrapped an empty frame around the wall mounted phone it would be cool functional art.

Two thick (deep?) photo frames, like the Ikea Ribba ones or similar, could cover the outlets on both walls - you just need to cut small holes for the cables. The viewing height is perfect from the sofa.

A phone with a wall-mounted base would help make the overall look less messy.

If you prefer a corner shelf or table, I suggest you make it an inch or so lower than the sofa. Otherwise there would be an odd, gaping hole below it. Place a plant, a standing photo or other attention-diverting objects on the table in front of the outlets.

You don't have to paint the outlet covers. I notice you have an attractive black or very dark brown wall. You can buy black outlet covers at Home Depot, Rona, or Canadian Tire. You can also buy the receptacles themselves in the exact same shade and install them yourself if you know how. You can do the same for the receptacles and outlet covers on that beige wall, they sell them in two shades of beige. It might be more challenging to find colours other than white, beige, brown, black and grey, but it is possible. I've seen painted outlet covers and they don't look that good. If anything they attract attention because they look so unprofessional. It's difficult to do a good job painting plastic. You have to carefully score the plastic, then find the perfect primer - if one even exists - then find some kind of spray paint which will actually bond to the material. Then you have to hope that every time you plug and unplug something, the paint doesn't chip off. I don't recommend painting these items with a brush because the brush lines will most likely be really obvious. And whether you spray or brush paint the receptacles, some of the paint will probably get into the holes and possibly damage them. The best thing to do is buy receptacles and covers in colours that match your wall. They hardly cost anything - outlet covers cost something like 79 cents where I live. A normal 15/20A receptacle, in black, costs under $2.00.