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Now I see what you've got, actually its quite simple, if you can get your inside back and outside back patterned to match the curve /shape of the top of the back you can sew together the 2 pieces along this shape. But this requires a sewing machine to sew along the top to make a semi cap-on back. The seam should be along the top outside edge of the back. The back post will hide the staples along the side and you staple both pieces along the underside of the back, staple inside back first then fold and staple the outside back over this. Works best if your fabric has a little stretch and thickness, and you should try the pattern out on some scrap fabric first. The results will be a much neater looking back then trying to make a separate attached back panel for this. And if you zoom in on the pictures in your link, I think you will see this is how they did these chairs also.

I think a key point with the ottoman is to balance out the massiveness of the couches with something less massive. If you go with an ulphostered, ottoman, I would use something slimmer. A wood table could be nice too. Then, to lessen the dark effect, you could keep your basket of books and add a plant, maybe some candles or a fake book box to hold the remotes. Other questions that come up are how do you use the space? How many people need to sit there? Do the 2 couches offer sufficient seating? If so, I would just remove the chair, then you can bring in dining room chairs on the few occasions you need more seating. If you are truly brave, you could use comfy, upholstered chairs at the head and foot of the dining table and then wood chairs on the sides for an eclectic mix (admittedly, I would be too chicken to do this, but I am a terrible housekeeper). As far as paint colors, how do you want the room to feel? Cozy like an English den? Bright and cheerful? What also comes into it is how much natural light the room receives when you are most likely to be using it. When you re-do the fireplace, I would look at small built-ins next on both sides to put the DVD player on.

I have a dining room chandelier very similar to yours that once had those little shades. They drove me crazy trying to keep them straight. Plus you see every single seam in every shade when the lights are on. I got rid of the shades and got frosted bulbs to mitigate the glare. I added my own sleeves from metallic paper. Anyway, it's something you can easily do with what you already have and the look is a lot less fussy.