I guess I should have mentioned there's a fireplace on the all brick wall of the living room on the far side of the living room, and the current entrance has a partial (3/4 height) wall/bookcase to separate it from the family room.

Thank you all for your suggestions! @Enduring I definitely can push the TV back on the stand. I don't think I have enough room to allow the back of the sofa to be a walk way. @Immcnitt I like the idea of a console table. I'll see about playing around with the layout over the next few days. I agree with the chair in the corner, it is a bit odd. I do think the layout is TOO open now and makes the table look far to small. Hmm. @Jamie Our ceilings are too high, would the new lighting need to be shorter? @Jamie I would love a new rug in the living room for sure. I hadn't thought about a rug in the dining room, maybe that would make that space feel so open now.

Do you own or is this a rental? The pix look a little stretched like realty ones. Since there is a rad between the doors, forget putting TV there. I'd keep the dining close to the kitchen and put the sitting/TV area to focus on the long wall. Start with the fun project of finding a knockout chandelier to hang from that pretty ceiling. Is there a fridge under the microwave? I see only one wall outlet behind the door and one above the counter, so you'll have to use extension cords and cord covers along the baseboards to have enough lighting here. Consider floating your sofa facing the long wall and TV. Then use a drop leaf table behind it for dining. You'll be able to open it all the way for entertaining. Anchor your seating area with a rug 2-3 feet wider than your sofa.

Try a 3-seat sofa facing the windows with a coffee table and two chairs, one at each end of the coffee table to form a "U." Use a drop leaf table behind the sofa to serve as a dining table/sofa table.Hang art opposite the grouping with a console or credenza below it. On the large wall add casegoods (bookcases, a secretary, display cabinets.) Additional art between the bedroom and entry doors. Scale is different below, but just for concept of a "U" and of a sofa/dining table.