I think it's a bit tough to give you advice because how you arrange your home depends so much on the lifestyle you lead. That said, I've offered some broad tips to aid in your redesign. Use light furniture with pads, then it can be moved around to make space. You can push the table against the wall and then pull it back when you're entertaining people. This provides some versatility to your space and lets you change your arrangement quickly to suit your needs. Try to find storage solutions that are suspended above the ground. Having a cabinet around the television can provide with a nice dark contrast and additional storage space. Anything high up can be long term storage; all the air space above 7 ft is mostly wasted (Unless you're legendary basketball player Shaq). Experiment! Spend an evening moving furniture around and see how you feel about it! There are many factors about your situation that are hard to consider. Do you watch TV during the day? (if so, moving it across from the window will give you glare!) Is eating together a large part of your family life? What do you see outside of your window? How late do you stay up? etc. Finally, do some critical analysis! What parts of the living room do you spend the most time in? why? Is that chair in the back used often or does it just take up room? Do you spend a lot of time playing with your child and their toys in the little play area against the north(assuming north is up) wall? You can setup a phone to take a timelapse over the course of a day and see exactly what you use your room for and how you enjoy spending your time. I hope this helps and feel free to ask me any more questions! P.S. It seems like your family likes the colour green; I would definitely recommend committing to it and adding some colour to your space! It can be as extreme as painting an entire wall or just getting a new cover for your futon!

That really leaves you with the current arrangement, replacing the grey chair by the front window with kid stuff and leaving the floating living space opposite the TV. I'd really look into rerouting cable so the TV can be where the large art piece is. It's not usually very expensive and will be necessary in order to keep your walkway from running right in front of the tv.

If accurate in your drawing, I am assuming you are leaving the space behind the sofa for a walk way. I’m not in favor of that because everything is off-center. Position the rug directly in the middle of the room, sofa on long wall, love seat under back windows and to balance the two seater on the other end, add two chairs. Ikea piece to the right of the fireplace and something above it to balance the window. Remove the brown table left of fireplace and add a smaller Ikea piece in white for this effect: (except mirror goes over larger piece).

I like the general layout you have, with maybe Beverly's change to some chairs for lightness. Large end-table and lamp in the corner -- that leaves room next to the door for a smaller entry table with a drawer, if you need a place to drop mail or hide mittens. Large piece of art over the two chairs or loveseat. I'd try to use all art in this space, and keep the family photos in the more residential/private zones. You don't necessarily need decor around the TV, although some prefer it.