Pottery Barn has sofas with indoor-outdoor Sunbrella fabric, https://www.potterybarn.com/shop/new/sunbrella-feature I second those who've suggested starting good habits while kids are young -- teach them from the start how to treat furniture and the family belongings properly. And this is the time to start with rules like "no food or drinks in the living/family room"; and yes, it's perfectly fair to have one rule for the adults and another for the kids. Or you can limit what kind of food and drinks to allow kids -- when mine were young, it was water or apple juice only for them in the living room, no milk or grape/orange juice. Also, they grow fast : ) , so you don't really have to decorate around them too much (round ottomans vs. wood rectangular coffee table). I'd decorate for the room and with what you like. Buy quality the first time around. The arched fronts might be fairly easily removable. And I'd almost be tempted to have the builder drywall over the shelving above the arches.

Per Flo’s suggestion, it does seem very functional to put the sofa in front of the window . I always hesitated, though to put a sofa in front of a window, As far as far as practicality and making The most of the space, though, this does seem to make sense, specially with the fireplace ( not easily moved), being a given. It does look like a portable fireplace but it’s not. There’s an opening and vent to the exterior of the home, it’s not a ventless fireplace. It’s listed as gas But the home inspection , within days, will clarify that.

Wall opposite window - brown door (will be white) - leads to utility room/garage.

What's the dimensions of the space anwhat is in the rest of the room? I am thinking built in bookcase but need these details to confirm.