I think I would swap the smaller sofa and put it n the tv room and put the larger one centered, floating in front of the fireplace. I'm not usually a fan, but since your window is off center, I'd try putting the small sofa at and angle, right of the window and face it to a tv in the opposite corner. For the bay window in the formal space, I think it would be a great spot to put your barrel chairs with a 36" round table height side table. What a wonderful place to have morning coffee, read a magazine, play a game of chess, etc or even maybe do a small puzzle. Like this arrangement, but a small round, game size type table.

A 55" TV is only about 48" wide. I really think the sofa should go on the wall and the TV should go above the fireplace. Otherwise, you have to choose between awkward TV viewing or an awkward sofa location. eta: I just read that you never use the fireplace. You could put the TV on a console in front of the fireplace (gasp) I know. But I think you could make it work if none of the fireplace was visible.

Really nice home and property. You could simply remove any central vac system and invest in a Roomba -- that could get rid of one something along one wall and let you square room 1. https://www.google.com/search?q=Roomba&source=univ&tbm=shop&tbo=u&sa=X&ved=2ahUKEwj1l-Ll87bnAhXJSt8KHZjVD0QQsxh6BAgPECs&biw=1366&bih=628#spf=1580785213419 For heating purposes in a large old two story home, being able to close off the stairwell should be the primary concern since heat rises. From personal experience ... if you have a wood stove, you'd be better much served putting it in a larger room or in a room open to multiple rooms. NOT in a small room such as room 3. If you have a wood heater, you could put it either in or in front of your fireplace (with triple wall metal stove pipe lining the chimney for safety). If you don't want to make room 3 your new Foyer/Entry ... but if you want the room 2&3 side of the house to be your front of the house ... another way to use the rooms is worth considering: You have a tiny bathroom very close to the kitchen/eating area. Budget permitting, the best use of room three could well be closing it off from room 2 and creating a new full bath in room 3. That would enable you to square the informal dining room and move the bathroom farther away from the kitchen and dining area. Once you've moved the bathroom, you could recreate the space between kitchen and informal dining with a pass thru kitchen cabinet "wall" that you can walk all the way around. https://www.bhg.com/home-improvement/remodeling/architectural-details/home-design-ideas-room-dividers/?slide=slide_2bf3e1c7-021a-4262-9de6-fd5daf3777a7#slide_2bf3e1c7-021a-4262-9de6-fd5daf3777a7 Keeping only one interior door to enter room 2 from room 3 means you could use room 2 as a bonus room -- usable as a bedroom or as you choose. It also means you can keep that one door to room 2 closed and not fully heat it all the time. You could keep as is or alter or (if not load bearing) remove the wall between dining and informal living room to create a single elongated rectangle shaped "great room" -- kitchen, dining, family room. If you created a pony wall between dining wall and informal living, your wood heater in the fireplace could heat the entire great room area. You could keep as many posts as needed for support in that pony wall and, with a solid back on the informal living room room side, you can put any furnishings you choose by it with the back to the pony wall. You could alter the porch beside room 2 between the window to room 2 and the door to room 1 to create a wider porch there that wraps around the side of room 1 several feet. You could even enclose that area and create a new foyer and make the rest of the porch on the right side of room 2 your front porch. Then in that back corner off the kitchen at a right angle to room 3, remove the shallow/narrow open porch and create a square deck or patio there with a rail around it and steps exiting on the left side toward what would be the back of your home. You might also consider a "green wall" -- row of shrubs -- all across the yard so guests are led to the new foyer on the right side of the home.

Although it is original, it isn’t a particularly interesting example of an Art Deco fireplace. If you want it to remain in keeping with your homes heritage, would it be outside of your budget to have it re-tiled with reproduction Art Deco tiles? If the fireplace still working? If you want to keep your original tiles, they seem to be in good condition, but will require cleaning and re-grouting. Beige tile is pretty neutral and should be easy to decorate around. Additional pictures of the rest of the room, as well as insights into your preferred style, should get you more suggestions on how to incorporate your fireplace into your decor.