So, it's 15 ft from window to fireplace? Is that the entry to the left of the fireplace in the last pic? That first pic Rawketgrl posted shows the seating area on an angle. That might work well in your room so that the piano and fireplace can be the focal points. An upholstered chair and table can to go on the end by the window. I like Acm's idea to bring in a game table, which can be just to display a few things if you want. The couch can be perpendicular to the fireplace, with the bookshelves behind it and couple of chairs facing the fireplace. Or, turned 90 so that the couch faces the fireplace. Chairs on one side, or both, depending on the room available. A table can be by the windows for display of some pretty things or used for games. Plants, tables w/ lamps to fill in the holes. A large rug will anchor your floating seating area. My combo family/living room is similar in size to yours. My seating area floats in the middle facing the fireplace, which is on the long wall. The back of my couch faces the entry because the shorter direction didn't give me enough room for my couch and tables. Around the perimeter is a huge lighted cabinet, a table with lamp, and two dressers that hold music/media with the tv on top.

Thanks again everyone for the feedback. Below are a few pics of the room from the listing, show the room better than I could. Sounds like: 1. Leave wood paneling intact and "as is" 2. Continue flooring down into sunken area 3. Replace track lighting w/ modern design but retain existing location 4. Paint wood ceiling beam to match ceiling color Would staining beam to match the wall be too much of one thing? I was originally thinking of making the flooring in the sunken area different, like a lighter white as a contrast to everything else? Pic below is sort of what I was thinking of, it's sort of an off-white, can't tell definitively but the main level flooring kind of sort of like what I have now. What sort of ceiling fan would work? I don't think it will need a light, not sure on the blade size though, don't want to overwhelm the room with fan but conversely don't want to put something in just for the sake of putting something in. As for the style I like, I'm not trying to necessarily "re-create" a particular genre but like aspects of several styles.

The basic layout Beverly posted is your best bet and you might be able to put a table behind sofa or a reading/feeding baby area you might need. TIP, get a good rug pad for your rug on your tile. It will eliminate telescoping of grout lines in rug and be more comfortable. I would also remove those drapes and unless you need privacy, which doesn’t look like it hence I wouldn’t add any drapes. Possibly solar shades if you need light control. A few strategically placed plants might be all you need.

It's too crowded, but if it functions as the man cave, I wouldn't worry about it. Find a quiet room somewhere else for your lady lounge and focus your efforts on some serenity. What would I do? I would eliminate so many big openings, especially the one into the kitchen. I would also replace the big sectional with a 3-seat sofa for more flexibility in arranging.