I would take out the big recliner. Then move the black glass cab to the wall where the blue chair is now. I would put the blue chair in the corner (where the black cab is now) with the small table and a different lamp (smaller) next to it. If there is room for the rocking chair I would place it next to the black cab or where the large recliner is now. You could always temporarily use your rug in front of the couch under a coffee table. I would edit it out the small orange chair only bc of room and the color. Not that I do not like the color of the orange chair but it would be nice to eliminate one of the many colors in the room. I would scour CL and see what they have in your area for coffee tables or go to overstock, they have tons of inexpensive options. I would also change out the light to a fan or a different ceiling light. I also agree curtains would look great if they are in your budget. Have you considered painting or is that out of the question. If you did paint I would use a much warmer tan. Also, you could look at CL for a different more clean lined sofa. Not that you need one, but it would help in opening up some room in your space.

You might consider moving the sofa to be centered in front of the window and put the chair nearer the door adding a pony wall height bookshelf (with its back to the chair), with or without doors on the entry side, between the chair and the door to create an entry; perhaps something like this: http://thegamersforce.com/ikea-glass-door-bookcase/bookshelf-inspiring-low-bookcase-with-doors-bookcase-with-doors-ikea-dark-brown-bookcase-with-glass-glass-door-ikea-bookcase-singapore-ikea-glass-door-bookcase-ikea-billy-bookcase-glass-door-instruc/ A barrister style bookcase could also work. Such a room divider would give you a place to add a lamp to the room.

Thanks Beverly. There is no television in this room because we use it for reading and visiting. Yes, the fireplace is on an angle and the book case is not. The bookcase runs parallel to windows just out of sight in this photo (left). Please see the photo taken from the wood floor as requested. We also moved the existing furniture around to experiment with furniture layout in these photos. Although the angled arrangement of loveseat and couch before felt cozy, I have to say the L-shaped arrangement makes the room feel much bigger. Wondering if the couch and love seat on make the room feel too heavy on one side. We think we'd like to put an armchair on wall below large painting - ideally two but may not be enough room.

Put the t v in the armoire. Get rid of the dresser. Repaint the room to work with the color of your armoire. Center the rug; move sofa to the center of the wall. Bring the chairs onto the rug. Consider a large ottoman (which you can cover with a large round tray) for a coffee table. It will do double duty. Purchase two end tables and lamps to replace what is on either side of the sofa now. No to that painting...you need one that is larger and softer in tone.