The room is awesome! I would just hang your artwork low. I might also move the poufs (or one of the poufs) to different locations that aren't symmetrical. For example, one pouf in front of the sofa and one where it currently is. For lighting, I would purchase a floor lamp for the corner to the right of the piano. Gira Floor Lamp You could also hang some plants in the left corner. Metal Planter

This is a great room. Although there might be a slew of suggestions about new furniture and placement of pieces, I think you should feel good about the way it looks. I'd add a potted tree somewhere near the doors to outside. I would also remove everything from the shelf under the horse pic and from the shelves to the right of the TV and get some bolder, more visually impactive objects to place there that have earth tones in them to relate to the colors in the sofa. Perhaps some large pottery items or nice handwoven bowls.

Photos sometimes aren’t showing up today on Houzz. Hopefully it is a temporary glitch and either they will appear tomorrow, or people might have to post them again.

Is the opening by "Sunset" a doorway? If so,  and if you have frequent traffic across the room while others are watching TV, that could get annoying with option 2. Otherwise, either option will work well. Option 1 is cozier for tv and but more crowded in the entrance area. Option 2 is less congested by the entrance. You may want to decide based on the size of your TV. Google the ideal distance you should sit from the TV and that may give you your answer.