The powder room is very small and is sandwiched between the kitchen and living room. We cannot put it in the dining room nor the family room and don't want it to go in the kitchen. We considered an addition over the garage and that was pricey and would raise property taxes. I would love to have it in a master closet, but we have two small ones in there that barely fit our clothes. I even considered ripping out our huge corner tub in the master bath and putting the washer and dryer in there. The contractor explained that would involve a total remodel of that room and would be very expensive. I knew when we bought this house that this would be my one issue. I may just have to live with it :)

Often good re-decorating requires taking some elements away, but you are asking for a feel of luxury, so you need to carefully add elements. If you have enough space and budget, then consider continuing the built-in to the other side of the fire place, and painting all of it to match. That will anchor the fireplace as the focal point of the room. Fabric can really add a sense of luxury so you could raise the curtain rods and add longer drapes on either side of the windows, with a filler spanning in between, not a swag, but something like you'll see as an example on the the first picture that Beverly posted. Original art says "luxe" and it looks like you have space for a great and sizable piece of art on the wall adjacent to the sideboard across from the dining room. Larger accessories absolutely, and some that are taller. They don't have to be expensive, but they should be things you really enjoy looking at and that you find delightful, or even amusing. Garage sales and flea market are gold mines. Then look carefully at the 2nd pic from Beverly and you'll get and idea on how to do a collection of smaller items to make a bolder statement (collections are 3 or more items.) The key to unifying is color. You've done a good job with your neutrals, add a couple of more luxurious throws in that palette and a few pillows. It looks like you enjoy blues so add that to the mix as well and a pop of black here and there and you should be well on your way.

I love the clean, uncluttered look of your home and you've made some great furniture choices. My first thought, though, is that I would try to rework the sofa/sectional placement. It really is unwelcoming looking to me to have the back where it is facing a wall, when it could be oriented to look into the room and out the windows. It seems like if it were placed in the corner under the stairs that it would feel open and invite you to come in and sit. I'd hate to be cooking in the kitchen and have the family or guests with their backs to me. If you are having a TV in another room close by, do you need one in that room, too? If, so placing a 70" unit will probably only work as you have it. But, to me, it's not going to look like a living room but more like a movie theater, which is fine if that's what you're going for. It seems like it won't be a cozy conversation area, though. I might actually flip the rooms and put the dining room where you have the sofa now. I was looking at lights used with dining rooms and ghost chairs and saw this, maybe would work in the living room? Kind of fun. don't know if it would look as good without the colored walls though. And I thought something like these were interesting to consider for over your table:

Well, blow me down, I just checked and there IS a bubble thing only on the washer door!!!! Who knew?!!! (ok, so you did!!! :) I think I may be the only one in the world who doesn't use a basket to unload the dryer. I pile it up in my arms and then shot put it onto the counter (which is why I'm thinking having the counter closer works better than the sink, for me. Actually, if I can get around the open dryer door, it's closer to get to the counter from the dryer if it's on the right side too. If not, I'll use a nifty cart that I learned about on here. I don't use a basket because I have a bad back and don't want to bend down to pick it up.. the w/d will be as high as possible. Now I just need to make sure if the dryer is moved to the right that it isn't too far for venting. The vent is going to be coming out of the top left of the closet (it can get through the left side of the laundry room because there is a barn door covering that whole wall. So close but yet so far!!!