It turns out I've actually read extremely few books set during WW1 - Barbara Tuchman's Guns of August and Zimmermann Telegram might very well be the only two, at least on the Western front, so no fiction at all? I clearly need to rectify that.
On the Middle-Eastern front, I enjoyed David Fromkin's A Peace to End All Peace, but as you might guess from the title it focuses more on the disastrous consequences of WW1 on the Middle East, than on the war itself. The diplomacy during the war with Sykes-Picot, Macmahon, Sherif Husayn, the Balfour declaration and all that, yes, but not so much the war itself.
And even further removed from the main WW1 theatres, I read the memoirs of Egyptian khedive Abbas Hilmi II, who was deposed by the British early on in the war on suspicions of being pro-Ottoman and hence pro-German, as well as some other books on Britain in the Sudan in that period (I wrote a master's thesis on Sudanese colonial history), including the British-Egyptian conquest of Darfur in 1916, but to consider that part of WW1 is admittedly quite a stretch, even though the British used supposed intelligence of Darfur-Ottoman contacts as justification for their invasion.
Of equally dubious relevance to WW1 itself, but one of the most fascinating books I've ever read: Robert Kee's "The Green Flag: A History of Irish Nationalism", starting way back but also covering the Easter Rising, the establishment of the Irish Free State and the Irish Civil War. Wikipedia tells me the same author wrote a supposedly excellent PoW memoir, but sadly about WW2, not 1.
One possibly relevant and also very good novel (I also just tried to recommend it to Tom, but he wouldn't have any of it as he has too many books already) is one that I started about Bavaria in the early 1920s, its socio-economic situation and the way the frustrations from the lost war fed into the beginnings of Nazism. It's called Erfolg by Lion Feuchtwanger, first book of a trilogy with the later two books set later in the 1920s and possibly 1930s (haven't read them).
Finally, someone on your blog recommended "A Very Long Engagement"; I have not read the book, but I did see the movie, which is great, made by the director of "Amélie" with the same lead actress, certainly recommended.