Yes, another option is to only use one of my leather chairs and have an "everyday" arrangement and then pull up extra seating when necessary. So, this would seat 4-5. And then I'd pull up the extra rattan chair and the two ottomans to seat 8. Or does it seem unbalanced having the larger leather chair and the smaller rattan chair flanking the fireplace?

I would try moving the furniture out from the wall, and recentering the tv so it’s more in line with the seating.

It does look like the room where leftover furniture goes because it doesn't play well with others. The china cabinet could be a good focal point as JudyG suggests, but only if you have something to go inside it that's worth looking at. Otherwise, lose the loveseat and put the china cabinet on that wall. Fill it with books, if nothing else. Alternatively, lose the china cabinet and keep all the seating. Add art above the sofa and loveseat, a rug and curtains, and call it done till you're ready to decide how you actually want to use the space.

If it was just my husband and I it would be fine the way it is. with children it’s a huge safety issue because if they stand on the couch they can go down the stairs. It’s driving me crazy to say the least. I feel others might look at the room differently than I would and would have a better idea