It's gigantic. I'd be trying like hell to avoid that. I'd use the dining table in the dining room for a combo desk /office. I'd buy more flexibility.......comfortable flexibility. A tv can mount flat to the wall, With an IR repaeater, it needs no console beneath. The cable box can go anywhere. I'd get a nice deep and comfy 84 inch sofa, put a console with lamps behind. Add two super comfy chairs and ottomans. A nice generous, light and open cocktail table. Lie down! watch the tube! Put your feet up! Add a little ottoman for a perch at the cocktail table. People love to sit and reach a snack. Add a low table between the chairs at the fire......open and light. Ten x 14 rug to ground everything. ( dotted line ) Go set yourself up in the dining room, to work, and just clean up when you have guests !! No matter the sprawl, no more than three folks will ever sit on that beast of a sectional : ) Two chairs and a total of three ottoman plus at least two on a sofa............for gatherings gives you seven seats. A smashing piece of art over the fire too.

Thank you all SO much! Really wonderful to read your suggestions and get input. Much appreciated. And makes me feel there is potential for this space. I never considered a bigger rug, but will do so now as that seems to be a repeated suggestion. We will also take another look at the the height of that mirror on the side wall (above the mantel is a actually a large framed photo that I blacked out for this post). We did experiment with turning the dining table the other way, but it didn't feel right and seemed to block the openness of the sliding doors. And I was leaning towards an upholstered bench behind the couch (for a casual spot to sit with the added bonus of storage for blankets inside), but perhaps that would be odd? Again, thank you all. Keep the ideas coming!

Another voite to remove the fireplace and hearth. Will you keep a desk area? If so, I would move it to the wall left of sliding doors, put the sofa table on the wall where the desk is now and the sofa against it. A lamp or two on the sofa table. Sleeper sofas are super heavy and sometimes not that comfortable to sit or sleep on. For comfort, a left hand chaise would be nice for TV viewing. With the FP gone, the TV could go to the left a bit and could sit on a small media cabinet. Rig sized correctly and a small round coffee table. ETA: After looking at photos again, I see that is NOT a desk area. If FP is removed, you could use that chest on the "new" wall with the new/smaller TV on top or hung above.

I love elcieg's suggestions. (I always do!) If your husband doesn't want to go with Gray Owl because he likes creamy, BM Ballet White feels warm and creamy but is less yellowy/more neutral than true cream; we painted Ballet White over old cream paint and before we got a second coat on, the cream peeking through looked positively orange. Ballet White is light enough to brighten the space while still providing some contrast with your trim. I do like the Gray Owl, though! I'm so glad you're painting the paneling. Your pre-gutted kitchen cabinets are giving me flashbacks to my childhood, when the pitfall of 70s decorating was oppressive darkness. The bones of your house are great and with a light color scheme like the one elcieg suggested, it's going to be fabulous.