I think the layout you have pictured is best. The room feels empty because it is off balance. Right now the tv is competing with the fireplace as the focal point. I would remove the art from above the tv and flank it with a couple floor lamps. Your seating area needs some tweaking. You really need some drapery panels. I also suggest raising the rods as much as you can and going wider (see pic on how to hang panels). Suggest having two lamps and at a much larger scale. I would also suggest a larger area rug so the front legs of your furniture sit on top. Also consider a more modern mantle that fits properly.

We might recommend moving the TV/fireplace to where the shelf is currently hanging. We think if you place the fireplace in the middle with artwork over it, and then place the TV lower on the wall over a console, then you should be able to place the sofa facing both the fireplace and TV. You would be able to place a small console where the TV/fireplace is now and have that as an entryway. If you got two chairs they might be able to be placed where the window is, next to the door. See our images below for more inspiration.

Flo, i think you have the tv at best spot on that wall or left back corner catty maybe? It may can also be viewed from a dining table near the front wall in dining room or even kitchen if catty in that spot. I imagine that sectional is almost 48” deep though? Living room isn’t too awful tiny for an apartment i think, although i agree the two sections of sectional, ottoman and cool round piece (?) is a lot for the space if we want to use the slider.

@MAE we really liked your layout, especially the round table. i think that will be a nice focal point for the room. what i'd like to know if its possible to have something similar but where, if you walk in and out the room, you're not getting in the way of the person watching tv