yes, you can use wooden window frame and shutters. provided wood should be properly seasoned and both ends are sealed by using liquid wax.

Depends on the windows. If they start from the floor to the cieling then to really enjoy the view you can place movable furniture a little away from the windows facing the windows. If the windows are starting from a little above the floor then you can think of permanent fixtures like bay windows, study area with table etc. There are lots of options on house you can search for both types.

The distance between chimney and hob needs to be 26"-30" : 65cm-80cm. placing it above the window, suction power is reduced, placing it in middle of the window, will make the window ineffective. Island chimneys are best suited to be positioned in middle of the room, the duct running through false ceiling. also they fall in the expensive category. it is best that you move the hob position to side of the window, or totally to the other side and do chimney core cutting there.

Hello, You can replace with modern sliding windows. You can select out of upvc or pvd aluminium windows depending on your budget.