Welcome! You should repost this on the "discussions" area of this message board. The "gallery" isn't very well travelled and I'm afraid your post may suffer from neglect.

Personally, I'd switch the longer sofa to the wall and move the Christmas tree to the other corner. Put the loveseat where the recliner is currently and the recliner where the sofa is currently. Do you have a TJ Maxx, Ikea or Home Goods nearby? You can usually find window covering there for $20-25/set plus inexpensive throw pillows. For the extra space in the living room, do you need an area for computer, etc.? Can you paint any of the rooms or is this a rental? Maybe you could create an accent wall in a darker color? For the tv, you can get cube organizers fairly inexpensively at Ikea or even Walmart (their BHG brand - I have two of those and they are very sturdy). Here's an example:

A couple of things strike me right away that throw the room off. First is the rug: It needs to be much much larger, and it should never be narrower than the couch. Second is to get longer curtains and hang them about a foot higher than they currently are. The art arrangement over the piano doesn't work; we'll remedy that. I like your fireplace and built ins. The shelves just need to be better styled--there are some good articles on Houzz to help with that, but basic rule is 1/3 books. 1/3 objects. 1/3 empty space--and I'd remove everything now over the mantel and use art. I suspect you can buy new furniture for no more than what it would cost to upholster yours, but that's a decision for you to make. I'll return later with a rendering of your room.

I personally prefer a couch instead of a sectional. A couch gives you a lot more decor options. The chairs don't need to be in the corner. They need to be floated in a seating arrangement by the couch, so you can have a comfortable conversation. How many people will be usually sitting in this room? In all three pictures, I prefer only one recliner. You may have to much furniture in this room. I like more space than stuff in a room, but that's me..