I can see 3 spaces you could do nicely. 1) a dining area right off the kitchen half-wall 2) with the tv over the fireplace, you'll need seating opposite. You could have a loveseat and side chairs facing that focal point. They probably would need to be flush against the wall instead of leaving a walkway behind them, unless the room is wider than it looks like. 3) In the front corner, you could have an l-shaped seating arrangement for a conversation corner, or a home office/workspace, or a piano. You wouldn't be able to see the tv from here at all.

Visit any Habitat for Humanity Restore Store and/or any "antique" -- used furniture store -- or charity sponsored thrift store that is large enough to sell donated furniture and you're likely to find one or more of those cabinets (tall and deep) that were used for large analog tvs -- until someone upgraded to the thinner digital tvs. Quality and supply of donated cabinets varies so it could take multiple trips to find a really good one you'd want in your home but do see if you can because, in addition to being easier on the budget than new furniture, you might find it useful for storage even if you don't choose to create a toy kitchen for the little one: https://www.pinterest.com/pin/521925044290872951/ https://www.pinterest.com/pin/AS5jzll5LQUFkFFlZEv9oGvR8UOFnLFzAyBvF5hZreJmcNbFLfcGVMw/ https://www.pinterest.com/pin/240238961342141195/ Some DIY work on used cabinets such as to close any cord holes in the back and/or add shelves or doors, could enable you to repurpose one to become much needed toy storage now and, depending upon what it looked like before and/or what you create, perhaps a linen cabinet later -- and do so on a modest budget. In a small space, "go tall when you can secure cabinets to the wall" (for safety w/toddler in the house) in order to maximize storage with minimum floor space used. If you could create floor to ceiling and nearly wall to wall edge shelves and/or cabinets (or cubes of a suitable size for baskets or creates you choose), the storage space that your daughter could reach could be hers and the storage/display space above that would be yours. It would be a plus if you could set your tv on a center shelf to have it out of reach of a toddler but at a comfortable height for viewing. If you don't limit you shelving to the blue wall but, instead, turn the corner and continue the shelves/cabinets along the side wall (for whatever width you choose for the play space), you could use that shelving/cabinetry on the side wall to hide any wires/cables you might want/need attached to both your computer and your tv. You'd want to leave several feet of play space in between whatever furniture you place next -- which, I suppose, could be your sofa for watching tv. Alternately, you might choose to use a long credenza styled cabinet and/or file cabinet to use as a room divider between the play area and your adjacent home office area. Everything between the home office area and the front wall would be your living/dining area.

One idea might be to add a very short wall on the left as you enter the living room so the opening to the living room is the same width as the entry ... and, by doing that you could put wall to wall built ins on that end of the living area, with or without a tv, and still create two separate sitting areas. I don't understand the "bar" against the solid wall behind the pantry and refrigerator. If you changed the pantry to a "butler's pantry" with a pass thru window, that would have made more sense. Is your "bar" a cabinet something built in? Have you considered either closing or narrowing the door between dining and living room and/or creating your pass thru bar there with your piano in the adjoining corner adjacent to the fireplace near the dining room wall? https://www.decorpad.com/search/butler-pantry-pass-through

Move round table toward wall for now so you have a pathway to slider door. Not sure what the person you had helping was thinking but we ALWAYS map out walkways and “transportation” around and between rooms. The basic furniture is too large for your space but this is probably best arrangement for now. At some point, I would put chairs in a media room or game room. Two smaller scale swivel chairs in a complimentary fabric would improve everything. A “gate leg” table behind sofa would serve dual purpose. When leaf is raised 3 could eat a meal. When lowered it would act as a sofa table.