Do these photos make it more clear? I've added three more things two of which currently don't exist. Label: Addition - this started out as location for downstairs powder room + laundry + would house 5ft wide coat and shoe closet. Now, considering making it a quiet area, sitting space, piano spot, place for coat closet? would probably have it open to the foyer or glass doors if needed. Label: Possible spot for 1st floor powder room. Self explanatory. Deck - This exists and the spot for powder room is eating in to the deck area as it is currently. NOTE: I've added more detail to the photos in the first comment

It looks like you really like blue. so any of your rugs is fine. but if you want warmth, you will have to bring in a warm color, red, yellow, orange. i like a touch of gold with gray. Finally on the topic of art. i always believe that you should buy art that you love and that you should buy original as much as possible. never buy big box store, you are paying hundreds for glorified posters. if you want posters they have monets for 8-$10. other wise look local or go to etsy or saatchiart, you will find many that will give your monet a run for your money. if you find those prices too high, you can get an artist copy. if still too high, i would go with the new style for a couple dollars or less they will send you an online copy of the artpiece. send that to an online artshop they can make it as big you want. they have these cool ones now where they printed on glass. anyway you are then paying only the artist and the framer. and if you save the email that contains it. that is pretty much the same as a signed print. not totally original but much less chance of you seeing it again.

May be just an issue with the photo but the wall covering behind the basket looks to be poorly installed. I would pull the sectional forward to cover that, place the floor lamp in the right corner and buy a sofa table to put between the sofa and window. I'd want the rug to slip completely under the chaise portion and then under the front 1/3 of the 4-seat section. I would select a round table. If you get a pretty patterned rug that you want to see, use a glass and metal table.

I'm a fan of #2. I always like the look of two club chairs side by side like that. I think having them together as one unit balances out the heft of a sofa and the huge TV. I agree that it makes sense to focus on the coffee table first. Are there any textures in your room? If everything is just flat wood, paint, and upholstery, I'd suggest a coffeetable that has a bit or texture or reflectivity to it. What kind of books are you looking to store in this room? I got a three tired brass and glass coffee table from West Elm recently and it is a fantastic place to display 12 huge art books. Better than a bookshelf. When people sit on the sofa, they actually gaze that the books, pull them out and read them. I like that.