This is just a guess without seeing the floor plan but I think I would be inclined to take the dark granite off the fireplace and make the whole area including the alcove look like one feature wall ...shelving,cabinets and tv. Something simple to jive with the kitchen. Then, I would mostly just ignore trying to make use of just the fireplace section as a feature. It would then be a larger section of feature with the alcove included and you could float some furniture and have better use of the space. Maybe not just like the picture...but you get the idea. Edited to add: this way you could start your area rug all the way down from fireplace toward sliders. It will make your space appear larger.

Thanks for the feedback. I agree 100% on the shape of the table. I like the oval best but size wise i think the round may be best. Ill have a better idea once the furniture gets delivered. Im a little worried about glass with 2 small kids but this is not a room they will spend tons of time in so could be an option. Originally, I was going to use a rough sawn beam for the mantel so the table matched nicely. However, i put the beam on my surround and I honestly don't think it works. I will probably just extend it vertically and dress it up with a nice shelf with crown as trim (like picture below. I love the rug we found but i wonder if it is going to be blue overload in this room. Would a rug that is predominantly white be best? Either way, we will be getting an 8x10.

Hi RL, So basically in the revised plan I am happy with everything left of the kitchen (ie the new family room and casual eating area that we will create by combining the former breakfast nook and a small recessed study and its adjoining covered patio). Our main reason for making this change is that the nicest/sunniest/widest part of the backyard spans the left side of the back of the house. We are planning to add a rectangular pool, landscaping and plant landscaping n this part of the yard as well. Creating this new family room/casual eating area will give us a chance to add a big glass door and allow us to take advantage of northern California's indoor/outdoor living style. In contrast, the rest of the backyard is pretty narrow and dark. See below for original floorplan shown in context with existing and proposed patio/pool. So given this new family room/casual eating area, I am struggling with how to re-assign the three remaining "public" rooms to the right of the kitchen (currently labeled "living room", "dining room" and "family room".) I have these three rooms, and I have three room functions (1) formal living room, 2) formal dining room, and 3) office/den), and need to match the space with the function. I am willing to remove/add/change walls as needed. Which of those three rooms is best suited to each function?

A chair (or two) with an ottoman and a table would be great, especially if you are sometimes able to work while sitting in a chair with your coffee, tea (wine) on the table next to you. Is there any way to turn the desk so your back is not to the door and windows? That would bother me. It seems the shape of the desk fits the the way you have it but I wonder if you could turn and float it? If that worked then you also would be able to sit at the desk and talk with someone else in the new chair....I do see you don't have clients but I know my DH comes into my office and we chat. I don't work from home but bring work home and he sometimes comes in while I am finishing stuff up.