I'd try and focus the seating around the fireplace and leave a path between the kitchen and french doors, to get to whatever is out there. Then I'd put a desk or bookshelves and a chair in the corner under the bar, for perusing my cookbooks, going online while someone was watching TV, doing homework, paying bills, household management, etc. I would try and keep whatever I was trying to do in there out of the path between the kitchen and doorway. That way the spaces will feel more focused, intimate and cozy. On the other hand, if that set-up works for you, then I honestly don't think it is that bad. Just keep on the lookout for art pieces you like and you can gradually deck it out more. Curtains would add an additional layer of cozy. An area rug with a nice pattern in front of the fireplace would "tie the room together." I got a nice wool oriental rug on sale and put it over my living room carpet that was the same color as yours, added an instant feeling of being more than a "pass through" room, which it tended to be also, due to the layout of my house, you had to walk through the middle of the living room to get to the rest of the house. The only downside of putting an area rug over carpet is they tend to shift, but perhaps there are strategies for solving that problem.

Is this space intended to be used as a dining room as well, or is there a separate dining room. I also assume the door will be the main point on entry. If the door is main entry and this space is just a living room then I would place an open book case to serve as a landing pad. Other corner across for door is other location. I would place TV console on wall same side as door. Float the sofa directly across from the TV and use the are behind as your walkway. should be room for a chair or two 90 degrees from sofa.

I lifted this from someone's website. It's good info. Ultra suede microfiber comes in different qualities so that's something to be aware of. It's not costly as I purchase it for $2.99 yd at a local fabric mill/outlet. I'm not trying to dissuade or persuade you but I just wish more young families were aware of this "silver bullet". First a photo of a sofa/chaise in an off-white and then the info follows. So microfiber is a bit of a polarizing fabric. Some love it, others hate it. It is undeniable that good quality microfibers provide the best combination of durability, stain resistance and clean-ability. I’m mainly talking about Ultrasuede, here. It really does feel like suede, unlike some cheaper microfibers. And I’ve heard stories of Sharpie disasters on Ultrasuede-upholstered furniture being averted with a rubbing alcohol and elbow grease. Even WHITE! Want to talk double rubs? How does 200,000 strike you? It doesn’t get any better than this. Lots of color options, too (solids). If you are environmentally conscious, Ultrasuede is a great choice, as it is made from 100% recycled fibers.

Keep the bed on the wall in the first setup.. never in front of a window.. move the long Chest to the wall between the two door and put the tall one next to the closet (opposite of where the long chest is now.)