Personally, I would not enclose the lanai. I like the open feeling of just the screens. We are expanding ours with a small birdcage and adding a patio out back to have additional outdoor space.
We also don't need additional "living" space. We have more than enough without the lanai. Of course that's a personal decision, and you may feel differently. I've seen many lanais enclosed with televisions and additional dining sets, etc. and folks do use them as family rooms sometimes.
We did buy a heater at Sam's that sits on an end table like a big lamp. It throws off lots of heat and does let me sit out and enjoy a cigar on colder evenings.
If it's really inclement, I'd just stay in the house.
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