Looks like Sherwin Williams Blonde to me.... I don't personally have it, but it's posted all over this site and I love it.

This kind of reminds me of my current house and why I want to move. Room C is completely wasted space for us as a formal living/dining room except for the holidays. We have an eat-in kitchen that we use day to day. Room A is our family room with the TV, kids toys, etc, and I have great views of my son while I'm in the kitchen. That's the same set up I'm looking for in my next house, just a bigger Room A so there's a good balance of space between the toys and the couch/TV. Since my son was born, we all end up in Room A anyways on family holidays because that's where his toys are and all the grandparents want to be around him, KWIM? So, in my opinion, and based on how you said you like to live, I'd have Room A as the family area with the items that will keep your kids in there the most (toys and game table in A, piano and books in C?). Room B would be the Office/den so you could hopefully still hear or sometimes see the kids thru the pass-thru through the kitchen and into Room A. And Room C would be a more formal living area with the dining table as you mentioned previously for Room A. I think the breakfast bar could remain as such and serve the purpose of a table. However, if I HAVE to pick one of your options, I'd probably go with Option 1. Where would your computer go otherwise if you chose Option 2? I think having a second living area in Room A would either end up even more as wasted space, or everyone (and all their "stuff" from Room C) would gravitate there anyway because most of the action in a home centers around the kitchen anyway. Tough decision! Good luck!! Here is a link that might be useful:

Sorry for the slang - I mean sliding glass door. Is your basement walk out or daylight window only? We use our garage stair daily due to odd ball work schedules and things. Our interior stair is a u-shaped though and I can't imagine trying to move a couch, weight/gym equipment or something larger like that using it. The garage access is a straight shot with wider doorways. To your point though yes there is a cost for sure. I like your newest version. :)

A TV that is not too big, since you are so close to it. It looks like we have the same sectional. We use it for our media room too. Ikea, right? We combined it with the dark brown media table and an open cabinet above that, in which we have the dvd's. If I recollect well it was out of the Hemnes series. We had one wall free where we placed the higher Hemnes closet with drawers and glass windows. A small table to put drinks and snacks on, proved necessary too. We bought one with a second piece of wood underneath, so one has extra space for things, like a magazine the kids are reading. We placed some (fake) nice plants (Ikea...) in it as well and it got cosy right away. We decorated with the warm yellow of Lion Kings stuffed animals and some orange as well. A throw blanket with orange and yellow in it completed it. The kids loved it.