I think it definitely would add value to your house because the next owner wouldn't have to go through what your going through now. I think you're right that people want more usable, functional space. Too many people think they want totally open spaces but they end up with what you have now with wasted and useless space. and in furnishing those purposeless areas, they end up with something that looks like a furniture store showroom. Boring! I agree with squaring it off and placing the French doors facing the foyer. An added benefit when finished, is you gain some wall space in your living room for a wide but not too deep statement cabinet that could hold a lot of the kids' toys and games. If you have frequent guests and need an extra bed, I like the idea of a fold-up couch or desk/bed set-up to give the room an extra function.

I’d recommend the same thing however, I’d align the side of each desk with the windows (not next to the windows, just aligned with them) and place a long narrow table between them for shared resources, like printers, etc., if there’s room (or add a large table top over both desks, creating a shared centre area). I’d also suggest you add drapes that cover the wall space, between the windows and some beautiful art on the wall facing the entry. As much as a rug could be quite beautiful, I’m not a fan of rugs on top of rugs, particularly when your current rug is patterned and your chairs have to be able to slide in and out. Look for some very colourful art and drapes to address your sense of “blah”. Your room and furniture are so neutral, you could choose almost any colour you like.

The taped out grouping looks very lopsided to me. Is it the camera angle? Guests will sleep more securely and get better rest if the bed is situated where they can raise their head and look directly at the entry door. If everything can fit, I would move the bed where the ladder rack is, and put the desk where you now have the headboard. This will enable you to leave space for getting behind the bed to clean and to make it up. The longer length of wall between the door and the window wall will make it seem more roomy. You can then put your diplomas and shelf on that wall, with the shelf hung 5' above the floor. Place the ladder rack left of the window. Use inside mounted shades or blinds so your pretty window frame will show; your paint colors are great!

II like the desk entirely hidden behind that wall, but this is better for Zoom calls. You need to be facing a window for the natural light to be on your face. You can use a ring light on cloudy/rainy days but if it is sunny, use the natural light. That also leaves the wall to your left for a new office storage piece like a credenza or file cabinet. If the glare from those windows bothers you when working, get some custom bamboo shades at Lowe's in a shade that picks up the caramel color in the rug. A new ceiling lamp and a brass floor lamp for the corner by the sofa will look great.Move the round brass table to the entry side of the sofa for a bit of bling to be seen as one comes into the space. Also add a lamp to your desk. Try not to use the ceiling light, for a warm and cozy feeling. Ceiling lights are great for seeing how to clean the space, but they do not enhance the ambiance unless they are interesting to look at. And speaking of visual interest, the map isn't that. If you need it for your work tasks, move it close to the desk. I would be something fun and colorful to hang 5" above the sofa. Don't forget a trash basked if you don't have a shredder.