Here a couple of other arrangements you might consider as you move forward. They both feature low concealed storage on either side of the single window wall. They can be topped with family photos, lighting, art or any number of things. Between them, a window seat is nestled. Option 1 has an intimate seating area for reading or semi-private conversations. Adjacent to it is a display wall shelf. Option 2 has a console on the dining room wall with a couple of ottomans beneath it, that could come in for guest overflow. I tend to agree with Decoenthusiaste that the dining wall may be a natural place for the eye to fall upon entering the room. So, keeping that in mind would be good. You have a good idea of how you want to use the room, so you'll have to determine how much seating you need. The options below would seat 6-7 comfortably and up to 9-10 in a party type scenario. I hope this was helpful. Good luck!

remodel then buy furniture. Start by deciding what stays and what goes, there is a lot of work here, I would start by deciding what you are going to do with the walls and floor. You are putting the cart before the horse. Live with the furniture you have now because once the carpets and wall change you will have a much better feel for the space. For example, I would make the whole wall right of the fireplace a new built into house the tv putting the tv closest to the fireplace, on a long pull out wall mount or a slide out so you can see it from all angles. I would remove the wainscot or paint it. I would remove the carpet and find out what's under there if nothing good go back in with wide plank hardwood. Looks like you have HVAC and electrical in the ceiling which leads me to believe you could add recessed lighting in here, but if not, I would move to a modern rail light system, or at least a semi flush light, unless you use the fan, then upgrade it, and add recessed.

This is a close up of a tweedy type rug that might work for you - I just think a darker rug will cozy up the area and complement the ottoman so much better.... This rug has been discontinued and the remaining sizes are probably too big for your space, but it might be a direction to be looking, if it appeals to you: Something like this might work, too. I can't tell for sure about the colors but Pottery Barn has samples available in store if there is one near you, refundable deposit when returned:

We need a to scale floor plan showing all measurements , windows and doorways also marked with measurements. If you already have your furniture all of those measurements too. I can tell you right now to forget the pass through from the kitcheni. I certaily do not think the TV should go above the FP you have walls for theTV to keep it at actual proper viewing height.If you have pictures of the space anf your furniture pieces that is also a big help.