@decoenthusiaste - I rearranged to where the sofa is on the longest wall and the TV is on the wall opposite of the window. I like that setup the most, but I need more seating in front of the window like 2 wingback chairs or something similar.

That really leaves you with the current arrangement, replacing the grey chair by the front window with kid stuff and leaving the floating living space opposite the TV. I'd really look into rerouting cable so the TV can be where the large art piece is. It's not usually very expensive and will be necessary in order to keep your walkway from running right in front of the tv.

I love the balance the existing door brings to your space. You could perhaps work around the furniture placement issue by floating some of the furniture pieces, rather than having them all along the walls. If you post pics we could help.

Here is a very crude drawing, a brainstorm of how to use the space so that instead of it being split down the middle, you think of the room as front and back space. The front space is mudroom area, the back space is sitting area. They are very much connected though because of the console or chest of drawers that sits directly behind the sofa. In this picture, the grey shaded rectangles are mudroom pieces. Behind the sofa is a console table with baskets underneath for storage. Or, a wide chest of drawers / dresser. I have always had a chest of drawers in my living rooms / hallways in which to store keys, purses, and shoes. Dresser drawers are a perfect size for shoes! 1. I'm not suggesting this style of furniture but a console table like this, with some drawers too and baskets on the bottom for hats, scarves, backpacks work well behind a sofa. 2. Again, not suggesting this style, but a console table like this with big baskets for tall winter boots. You could like baskets like this with boot trays. 3. On the left side of the mud area, you could find a wardrobe closet for hanging coats. My brother has one in his living room. It is vintage and not very deep at all - not even the depth of a hanger. Instead it is full of hooks that their jackets are hung on. They can cram a lot in there. Here are some ideas for ones though I am not even sure what the interior of these looks like: 4. On the right side of the entry area where you come in you could place a bench for sitting and taking your shoes on and off. It could be a bench with storage underneath, an upholstered bench, whatever compliments the style of the furniture in the rest of the room. I like the idea of around coffee table so the room isn't all rectangles. I think a great lighting fixture could help here too. If you were to choose this set up you could get sitting room pieces and mudroom pieces that all look good together and create one cohesive space with two functions.