The plan separates each living space with access from a central hall. It would work well for an office building but not so much for a house especially f you plan to entertain. I find that trying to make a good plan out of a bad one is usually a waste of time and effort. Its like renovating a house that hasn't been built yet. Decide what you think an entertainment space should look like and develop the house around it. But I would not design a house around an occasional use. The interrelationships of family members should be the dominant theme of a house. And I would never put a level change in a living space unless there was an alternate wheelchair route. If you plan to entertain, the front door should have wheelchair access too. An accessible half bath would be good too.

The fixture above in my post is what I would like to install. The below link is similar to my dining room chandelier now, except mine is bronze with cream glass. I couldn't get the picture to upload. https://www.lowes.com/pd/Progress-Lighting-Renovations-27-25-in-6-Light-Forged-bronze-Etched-Glass-Tiered-Chandelier/50131632 I cannot post a picture of my space, hence the drawing, as it is presently under construction with materials and debris everywhere. I hope this helps.

You really only have room for a sectional and one chair, or a sofa and two chairs like you currently have. The sectional and one chair will not add anymore seating though.

Try a chaise sofa and one chair in the TV room so you have room for kids play area. In the living room use a 3-seat sofa and two chairs grouped around a coffee table and use floor lamp flanking the sofa.