@klfische Oh, thank you for the suggestions, your post is full of useful info! I love your ideas! Just to be sure, which wall you refer to as back wall? If I understand you correctly you are suggesting something like this: I like the idea about the one big piece of art instead of many smaller. My partner wants to have concealed tv, so I am thinking about having tv mounted under the lower part of the big art, so that the art can slide up when in "tv mode".

I think if I had the luxury of new furniture, I'd do two short sofas facing each other, flanking the fireplace. The one in front of the window shouldn't be up against the wall, so that there's room for curtains to fall and the illusion of maximum space. Get a nice BIG area rug that you like, and a proportional coffee table to go between the sofas -- maybe something glass since the fireplace looks like it's dark and might just feel darker when it's competing with wood. Whatever you pick, focus on size so that there's ample room for people to walk everywhere. It'll feel generous and welcoming. Great bones!

Photos of the intended furnishings and the space are more accurate for assistance. We offer remote services should you need. Best wishes!

If you want to keep the sofas in same spot I would set the TV up in front of the Bay window and find a TV stand with storage for some of your children's toys/projects. That or place the Tv on the stair wall and set up the couches around that. I think the key is finding something that can store your childrens stuff so you can open up the room.