I tried out some options, some suggested by you all, and am curious what you think. I would like to keep the Stuart Swan chairs but probably have to let go of the ottoman if I move them to the living room. And then we may do a sofa with upholstered ottoman in the dining room for TV watching. Or a sectional with a left arm chaise (chaise closest to DR entrance, I mean; but that would make the entrance to the room a little less open). Thoughts? Option A, couch at window and chairs under piano window. Imagine a slim table between the chairs, a square coffee table and poufs opposite the chairs. Side table and lamp where pharmacy lamp is. Rug under chair & sofa legs. Bookcase goes. Option B (below): Couch under the piano window. Imagine rug under sofa legs and chair legs, slim table between chairs or C table on left one and a square coffee table with poufs opposite chairs or couch. Matching side tables and lamps on couch ends. Slim pharmacy lamp on left chair (if no side table). Bookcase goes. Out of option A & B - do you like either? Or do you prefer my earlier post with the two chairs like so, let's call it option C:

Agree with others. Can you turn the mirror (you don't have to hang it, just lean it) and post a new picture. If that doesn't help, colorful art would be lovely. For reorganization, how about a longer tv console with drawers or baskets for storage. You can never have too much storage :) I see nothing wrong with your paint color. If you want color, you could add it w/ panels. Do you have them now in dark brown? It's hard to tell.

I think I would have one couch and two chairs. A couch in front of the fireplace and two chairs in front of the TV OR chairs in front of the fireplace and a couch in front of the TV. Depends on how many you want to be able to sit. Put tables and lamp appropriately for the furniture you decide. Are you saying your whole house is under 800 sf? Or this room is 800sf? Then the less furniture the better. IMO sectional no.

I think you are very much on the right track with your current layout, I would make a few tweeks, place the tv on the wall opposite the fireplace, similar to where you have it but not an angle, put it on a long console that will take up most of the space on that wall, console if possible be floating or open at the bottom, something like the pics below. keep sofa where it's at and then add a couple swivel chairs where you have the current chairs and then possible a couple more smaller size chairs flanking the fireplace, add a narrow rectangular coffee table, some side tables and lighting.