Yes, that is the exact set up we have--- and that part of our basement has a width of about 14 or 15 feet I think so it is very similar to yours. In fact, our ID brought one of the walls in closer to create a more intimate "inglenook" type area. We don't have a problem with stiff necks while watching anything if we're sitting upright. And we have two swivel chairs at the ends of the sofas where one can view easily, but the prime real estate is still the sofas. I have to ask, though, for people whose sofas face the tv: does it hurt your neck to watch while you are lying on the sofa? It's the same situation....I never hear of anyone complaining about that,

I would go with stenciled roller shades for 2 primary reasons: 1. Very few holes added to the woodwork. 2. Your trim is wonderful. Roller shades will afford you the protection you want, yet also allow you to show off the trim most of the time. http://www.annwallace.com/roller-shades/

What direction are the windows facing? If south or west I would suggest at least solar shades to control heat, UV rays and glare. We got fabulous rad covers for all our old 50's rads they were from HD install in minutes .Since the kids use the space I would probably look a Ruggables instead of wool. Not sure what the issue is with needing a transformer . With kids I hesitate too use floor lamps for sure but maybe some nice table lamps for lighting The art is way too small for the space and also hung too high to even enjoy.. I think a nice low storage unit for toys with the TV wall mounted above it would be good and Ikea has the Besta system that is attractive and afforadable and it can really be designed to have storage TV and even a bit of display to make good use of that wall space on the left

Have you considered modifying and enlarging the pony wall? Pre-wire it for the TV and get rid of the e-center entirely. Put the two loungers on swivel bases. That will give you a lot more flexibility with the furniture arrangement and two focal points. Here's an example, but yours could be larger and higher if need be to get TV at the right height for viewing.