So you want to use the living room for children's play, TV watching, piano playing and entertaining guests? That's a lot of function for a small room. I'm wondering, do you have a dining room and what do you use it for? If you have a dining room, but mostly eat in the kitchen, you could easily turn the dining room into a piano room and play room for the next couple of years, until the kids don't need a play room anymore. Then you could have a living room with furniture that can float away from the walls. You could have adequate seating for guests, without cramming toys and a piano in there. Your options would be greatly expanded. Maybe you don't have an eat-in kitchen and this idea simply wouldn't work in your house. But it just seems to me that you are trying to fit so many different functions into this one room, and if there's any place in the house you can move one or two functions, you would have a much easier time decorating this room. Don't lock yourself into what the name of the room is; look at each space in your house in terms of what functions it can best support.

geokid, that is actually what I think my husband and I will be doing! What a coincidence! Over the weekend, we tried almost all the layouts suggested (much to my husband and everyone who had to help's horror), even went back and forth a few times, and have settled on two arrangements that will work best for us. In either arrangement, the sofa is going to face the fireplace. We'll have two slimmer side chairs with a opposite from the sofa. We most likely will have the TV mounted on the long wall with a smaller cabinet or mounted cubbies/shelves (something) for the electronics. I might add in a small tufted bench opposite the TV if we need more seating, but the two side chairs should work for now, and when my family/friends come over to play video games (which seems to be really often lately), we'll pull the chairs over. But realistically, we all sit on the floor. The piano will stay along the stairs, and to balance the open wall space between the piano and the sofa, we'll mount some shelves for decor and books. We tried mounting the TV over the fireplace, and I surprisingly liked it, too! It totally cleared up the floor space and made everything so open, but...it was kind of uncomfortable to look up at the TV. I'm only 5'3"; I don't mind a few minutes like that, but not for a couple of hours and not for game-playing. It's fine for my husband, though. I'm still keeping this an option, as I think we won't really know what'll work for us until we start buying some new furniture. I tried placing the piano in the dining room; no good because it ate up too much room. The bookcases are currently there, and I kind of like it! LOL. We have no dining table yet, so it feels like a special reading room. Haha! I like the idea of the bench along the window. If our chandelier was centered in the room, would it look weird for the table to be off-center? Otherwise, my plan was to buy a narrow table, have bench seating on one side (probably closer to the bar area) and regular chairs the other side.

I think I would also move the TV to the 9'3" wall as Barnes Custom Builders suggested. I would then move your couch to the 5'11" wall (pulling it away from the wall so the vent can function). Then, I would flank the chunky chair to the left side of the couch. I would purchase a TV credenza and mount TV above. I would then fill the previous TV location with a credenza with a lamp and a mirror. I would also get a single large piece of artwork for the 11'9" wall. I would get rid of the bent wood chair as you suggested. Here's an option for a rug, credenza, media console, lamp and mirror... Moroccan Tribal Cross Section Rug Geome Sideboard Seno Media Cabinet Ripple Ceramic Table Lamp Wall Mirror Brass Hope this helps or inspires!

Paint fireplace white or the same color as the walls, remove bookcase that is on the right side of the fireplace. Get a corner TV console for the left side of the fireplace....maybe tv will partially cover the window, but that is okay. Get some pretty artwork for over the fireplace and take the colors from that for pillows for your couch and a rug if you want. An ottoman or upholstered bench in front of your couch to be used for extra seating when you have company.......should be on rollers, easy to maneuver. Where the shelf unit is now, get a tall green plant..nothing else. If room, I think your chair and a small table will be good by the stairs. At the bottom of the stairs you could put a decorative shelf or console with drawers under the window...facing up the stairs. with a small viney plant on it. Oh, yes, I would pull your couch back as far as you can...without interfering with the door. To bad the door does not open the other way. Have fun rearranging. I do approve of your curtains...white sheers but they should be twice as full as they are now and the door curtain should match.