I moved some things around and I think I like it better. I know the rug is too small and it shouldn't be "floating" but I don't want a new one until we get the other changes done. I moved the dresser into the dining room and hung (probably too high but couldn't convince 6'3" hubby to lower it and he had a point about being out of reach of the tornado. haha) the sign and pictures that had been on the mantle in the dining room. We also took off the ridiculous trim board they had up because we will be replacing the slider soon. So many things in this house like that silliness. I organized most of the books and moved the bookshelf. And grabbed a few canvases (I know they are small but can't remember where we left my big one) I did the flower, my dad painted the one on the right in Vietnam in '68. We need to fix the coffee table my dad built that's in the garage, I'll put it in front of the sofa, it's a little under 6'long, so it might be technically too big but, again, it's what I have. How'd I do?

Post pictures of each wall in the room. Not curved, straight on.

Agree with @JustMe's suggestions. The white cabinet on the short wall actually constricts the traffic path past the sofa, because it prevents you from taking a diagonal path at the wall - you have to clear the cabinet before you can angle past it. And visually it's a "look at me" accent piece in a small area. Not a good look. I'd remove it entirely. On the wall where it is now I'd exchange the horizontal piece of art work for the smaller vertically-oriented piece of art work that's around the corner from it. It will look bare to you at first but give it some time. Leave that smaller wreath-facing wall empty. That will give you more physical and visual space to move the sofa over. A 48" space between the wall and the sofa arm is sufficient, especially without the white cabinet. Your room will look more spacious with the chaise side of the sofa pulled away from the window. Right now it looks jammed against the window. Center the rug on the sofa. Only the front foot of the sofa needs to be on the rug. Stationary drapes on either side of the window will give your room a much more finished look. It will also draw attention to your large attractive window and to the view beyond. I would go with blue. Not sure what you have there now - is it a blind? Before you buy anything new, see what you can do with the stuff you have. I'd remove the wreath that's centered on the window wall. It's neither in the kitchen nor the living room, and doesn't add to either room. Wait until you have added drapes to see whether that wall needs anything. A good strategy is to remove the smaller decor and wall items until the larger stuff (sofa position etc.) is decided. Then see what you need to add. Sometimes, "filling in" spaces with decor just adds to a cluttered look and draws attention away from the more attractive parts of your room, e.g. the wreath draws attention away from the attractive view out the window. Do you need more evening lighting in the living room area? Maybe an arc lamp behind the sofa in front of the wreath wall? Or plug-in sconces against the wall to softly light the wall without any glare? But that's the step after the big pieces of furniture have been placed.

To try to answer your questions...two armchairs facing away from a room's entrance do not block anything visually. Try this: Leave the blue chairs where they are. The sofaback facing the big wall and the square stools in front of the windows and the entertainment console will be right there under the windows so you can sit and access it. As a hangout/music room there will be clutter with all the gear. Get a large coffee table with lots of storage. Get your bookcase with storage doors. Your guitars and ukes can hang on a wall next to the key board. I think you're okay if you still want to revisit that concept. This is a concept rendering and not to scale. I included the keyboard in the upper left and bookcase lower right. The windows are the blue line at the top and the console and speakers with it. Parthenon Coffee Table By Kelly Clarkson Home shown in Turquoise and Vintage White