Nothing in picture is staying. All items are from other house and are just there until I decide what to do with room, what can be reused and what really must go. Ceiling in room is near 25feet. Lighting other than lamps will come later. Large art is a must. DH says that will come after the furniture. We have been getting ideas as there are also walls in the entry and stairway that need large art. I kinda like the idea of the curved sofa. Not sure if it facing the big wall will work. It may make room look too skinny. We actually did consider flipping the room at one point but decided to keep it the way it is. The room seems long and skinny but the width is actually decent. I think the real problem is that the windows in corner of the front of the room. It makes one want to either be in the area by the windows or be in the area where sofa is. We tried to overlap the sofa on the window and it looked like we were overlapping into that space. I agree that those sitting on sofa in the current layout feel on display as it is first thing you see when coming down the stairs or coming in the house. At one time I thought maybe doing a loveseat a few feet from arch with a sofa table behind it. DH was not too sure about that. I think he felt it chopped up the flow of the two rooms and when sitting on loveseat your back would be to the diningroom and anyone coming from there and the kitchen beyond. I am really into Feng Shui. Flow is important to me. I am just not sure how to achieve it in this room. Here are other views of room from a while ago- note other paint colors. View across room, looking towards entry from the sofa wall.

Does your FP work in both rooms? Is there another option for guests to get to the DR without those two openings? Your large sofa is in a good place but it (and the sewing machine) seem to be blocking that doorway to the DR. I'd consider closing at least that one, if not both openings. The loveseat needs to be replaced with a pair of chairs and a table. That will eliminate the bulk that is cutting off the window side of the room. Consider placing a game table and chairs in the window area. Another option would be to float sofa facing the FP with two small scale chairs flanking it with a coffee table accessible to all the seats (18" or less from each.) A sofa table could face the entry, and then the window area could still handle a small game table and chairs. If you're not into games, a bench under the center window would provide additional seating. In any case, I'd find another location for the sewing machine, and consider end tables. They should arrive 1" above or below sofa arms (same for chairs with a side table.) Here are a couple of inspirations for a game table.

The room seems big, but so much of the perimeter is kind of useless as a location for new seating. Casegoods could fill some of those voids visually, especially opposite the FP where you need a large counter balancing piece like a bookcase and then some large art in the stairwell. I would plan to ground the seating on a large rug. You can tape out some versions for size using the stair railing and fireplace as your boundaries while aligning the rug to some of the windows. The sofa would have its back to the stairwell end of the room. Two chairs would sit where your large sofa is now and, if you do the 4 swivel chair arrangement, two would sit with their backs to the upper landing. Three boys and a dog need space to run around and play, as you said. That's why I suggested smaller scale furniture that would leave some more floor 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