Bathroom wall, so you can see FP too. You'll also be able to be more open (seating wise) to the kitchen and island seating. A breakfast table and chairs/game table can go in the corner area (right end of room, on floor plan).

We've created a 3D mock up of your room so you can visualize your space better. You could place the sectional where the couch is and eliminate the single chair. The TV can be placed on the opposite wall next to the door. This layout works if you don't mind that the TV viewing will be interrupted when people walk into the room. It also opens up the whole room and makes it look more spacious. You can get blinds/ drapes if light from the windows are an issue. If you could upload a floor plan with dimensions, we could create a mock up of your whole room. You can also make your own layout in our interactive 3D build. Let us know if you would like us to help with more options.

In the same home that may have two parents flopped on a sofa watching netflix in wide screen plus 65 inches, the kids will be watching a PHONE 3" x 7" .........on the same sofa, if you're lucky. Years ago the battle was could/would that kid have a tv in his or her bedroom...or not? Now? The answer would be, "Oh they really don't watch tv...." Correct. "They" watch a phone. More and more, I am finding folks completely ditching cable tv, "We stream a movie now and then, other than that, nobody really watches" the gigantic black screen around which the seating gathers. The past pandemic year may have been a bit of an exception.......sports is certainly an exception. But. The "daily drone" is and has been changing very rapidly for those under 35. Your grandkids are probably thrilled with an ipad and a floor pillow. : ) That's their "big screen" and they care even less about the fire. The next decade or two will be interesting .......as will tv size. : ) Ask yourself how long it has taken to acknowledge that the mud entrance is the main entrance in a home, the entrance with the most traffic, need for storage.......then ask how long it took the average suburban builder to build to this simple fact? Even now......a glance at some of the new build plans posted here? lol......still VERY wrong. Really, if we're going to cling to this centered on the fire concept, we need to admit the need for two tv;s /synced and get over ourselves. : )

I can see option 2 working the best, but hopefully there is some flexibility at this point. Consider improved functionality, as well as (eventual) resale. You can gain a wider area between kitchen/seating area by changing the opening on lower right to be near kitchen. Now seating area can be moved down! Suggest an island (longer than peninsula if possible) to gain access on both sides, added storage, wider if possible for better entertaining (ie: buffet). I’d move sink/dishwasher to be near dish storage and to keep island/peninsula clear. People will gravite here. A focal wall with built in electric fireplace would feel spacious, be a great feature in your open concept, and keep that space uninterrupted to get to opposite side of room. Opposite wall idea. There is a lot to consider and thinking about overall functionality is key before furniture placement. Hopefully you have a floor plan with exact dimensions, structural components and space requirements to make the best decisions. Good luck.