Thanks, anitamo! I've arranged how you suggested and I think I like it. Of course, I don't have any matching chairs right now:( I used the recliner and the orange armchair. I agree about all the colors. If I was to use the blue I would definitely recover it. I will be keeping my eye out for a coffee table at auctions.

I must have scared off other posters with my over abundance of information! :)

Good suggestions from anitamo. Since it appears that your sofa reclines, I would not add a coffee table or ottoman. Search consignment shops and craig's list for end table and lamps. Look around Home Depot/Lowes for a ceiling light fixture that does not hang down, or a fan if you prefer. Can your rug that is rolled up fit in the foyer or under the kitchen table or next to a bed?

Drapery would add so much to this room! Check out overstock and Wayfair for options.

If you moved the two wing back chairs against the window, you could put the larger leather chair over in the corner by the dining room entrance, right were the blue wing back is now. I used to have a similar set up as you, except I had a big, useless fake fireplace on the wall opposite the couch. It was a real pain to set up furniture given the traffic flow through the room. Here's a photo of my living room. I eventually got rid of the desk and moved the big chair to in front of the windows, but it does show you how you could put some storage/display pieces against the wall opposite the couch, and then set chairs against that, moving your seating area in a little bit.

I would take out the big recliner. Then move the black glass cab to the wall where the blue chair is now. I would put the blue chair in the corner (where the black cab is now) with the small table and a different lamp (smaller) next to it.

If there is room for the rocking chair I would place it next to the black cab or where the large recliner is now. You could always temporarily use your rug in front of the couch under a coffee table.

I would edit it out the small orange chair only bc of room and the color. Not that I do not like the color of the orange chair but it would be nice to eliminate one of the many colors in the room.

I would scour CL and see what they have in your area for coffee tables or go to overstock, they have tons of inexpensive options. I would also change out the light to a fan or a different ceiling light.

I also agree curtains would look great if they are in your budget. Have you considered painting or is that out of the question. If you did paint I would use a much warmer tan.

Also, you could look at CL for a different more clean lined sofa. Not that you need one, but it would help in opening up some room in your space.