Tapestries will dampen sound, but so will stretched canvases--anything that isn't a hard surface. Your light fixture seems awkwardly placed with respect to the new sitting area. It is hanging too low to be a focus point, but high enough that you can't ignore it. I assume it is centered over the open space below, but that makes it off center when viewed from the landing. I don't know if there is a different fixture/different height/different placement that will look good from both the landing and from below, but it's something to consider. I would consider either leave it centered over the room below and lower it so it isn't so obtrusive from the landing, or hang it higher and move it so it is more centered as viewed from the landing (I'd also look for a different fixture, wider than it is tall, in that case).

With all due honesty, I had lots of comfy chairs in my last home where I lived alone, and almost never sat in them. I hung out on the couch and the only folks who sat other places were guests or me when I had guests. I agree with some other posters, spend your money on a kick butt couch, or even a high end futon. They also make futon chairs which can double for sleeping over guest if they are young enough to be able to get off the floor, lol! Whatever kind of seating I chose, I would make sure it could do double duty for some purpose I needed. However, I could be wrong, maybe you'll sit and sit in the new reading nook. The only chair I ever would sit in occasionally was my rocking chair, different vibe from the couch.

It's simply not true that hanging a TV above a fireplace sends people to the chiropractor. It may be the personal preference of some to hang a TV lower on a blank expanse of wall but that's all it is - personal preference. I wish people here would not make outlandish claims about TVs hung higher than they prefer them. I would try a small bookcase on the wall between the fireplace and the recliner. Perhaps a floor reading lamp on the other side of the recliner. Is that a curio cabinet next to the side table on the other side of the room? I might try to find another spot for it, as it looks a bit cramped. Try not to fill every empty corner but allow some breathing room around furniture.

Once the futon is gone and then I would remove the shelf and plant from the corners and your room will seem larger. I would suggest 4 chairs around a low table. That makes for a great conversation area and for company while prep is going on in the kitchen. Maybe the table I’m seeing there now could be pushed to the island with the 3 chairs around it? Or if 4 chairs won’t fit maybe 2 larger chairs with ottomans in the corners next to the window.