Do you have any photos you can share with us to assist in offering suggestions?

The current brown leather furniture in this room, will be moved to a playroom. So I'm open to new furniture set ideas as well for room.

Your home has great architectural elements use them to your advantage to showcase art and accessories (make sure they are cohesive in color). I find large comfortable sectionals ( rest. hardware) in a non leather material give a warm feeling when you walk into a space. Your home is traditional in design and architecture so I would add I would mix in a few contemporary elements to add more interest (small accessories). If you add a large area rug it will help define the space and will add a layer. Design is all about layers. To finish I would also add a chair with ottoman to the living room to make the room feel more inviting. I hope this helps.

I would start out with a large, beautiful rug in warm colors (terracotta or red Oriental rug mixed with other colors. I feel sectionals often confine you in how to organize your room. I would choose a fabric couch in a neutral, not too dark color (not gray, which is on its way out and not a warm color), and add two chairs in a different color or at least a different material and style. Try to keep the height of these pieces similar. Two end tables in wood (they don't have to be the same, but make sure the heights are fairly similar and a metal and glass coffee table would look great, with table lamps or floor lamps even if you have overhead lighting, which is always harsh. Pick colors from the rug for pillows and you'll have a beautifully coordinated living space. Books, good paintings and some tall plants will add warmth and personality to your room. People too often don't add these elements and then wonder why their rooms look bare and cold.

This may be more colorful than you want to go. and this is a small rug because there is carpeting underneath, but it gives you the idea of neutral furniture and how it can be made more lively with accessories, pillows, coffee table styling etc.