Rarely do people gravitate to a 2-seater unless they're lovers. Could you sell that and get two armchairs instead? Loveseats are the bane of good arrangements. Blocking off the doors to the bedroom would be a good idea. Maybe you could match curtains there to some flanking the bays. TV at the door, two chairs in the bay opposite it and large sofa where you show the 2-seater. You can add a table and lamp between the chairs (round if you angle them, square or rectangular if you straighten them up.) Not sure how the bays are configured, but shades at windows and drapes outside the bay can be a nice look. They can just be stationary panels if you prefer.

Having had a "setee" which is just a loveseat by another name, I can vouch for it not being very practical. Two people can sit at it, (and they will and have in my house) but unless they are very good friends or related, it's not going to be their choice, particularly if they are doing something like watching TV. Sipping afternoon tea, maybe. But if you don't need a lot of seating, then their small size is great, particularly for curling up with a good book. It's easy enough to throw in a rocker or some other smaller less padded chairs to add extra seating. I use the end chairs from my dining room set, since unless I have guests, they make it difficult to get around the dining table in my small dining room.