I have refinished two basements. None were like yours. I would NOT cover the drain or disguise it. I'd either leave it as a trench that you can see or as suggested above move in from the drain a few inches so it is still accessible. I am going to tear out my basement carpeting and have the concrete finished in a faux stone look. I'm thinking this type of flooring might be something to think about IF flooding is a possibility, as there would be nothing to be ruined by the water. Area carpets could be rolled up if an issue happened. What about windows? Do you see evidence of past water issues? If yes, can you prevent it in the future? Answering those questions will lead you on the right path. You didn't say what you wanted to use the space for. Different uses would dictate different finishes. A man cave vs a family room vs a guest room vs a project room or shop. Be sure to check if you have room on your electrical box if you want to add outlets and electrical equipment in this space... no sense in envisioning a media room, and not having room for the electronics required. Good luck.