I would move the tv to the wall where the couch is now. Move the couch opposite, with its back to the sliding door. Consider adding a sofa table behind with a pair of lamps to bring more warm lighting into the room. Keep the small chair where it is on the right side of the fireplace, and use the floor lamp next to it. Put the chair and a half and ottoman to the right of the couch, the end table and lamp beside it. Move the whole arrangement a bit closer to the fireplace, and make sure that the front legs of the couch and the chairs are on the rug. I agree that the coffeetable is not the best choice. I would love to see something round, perhaps a wood or slate top, with iron legs so that you don't have so much heavy furniture in the space. Down on the end wall where the tv is now, I would think about a game table and chairs in the corner where the screen is, great for snacking or playing games or doing puzzles. I would find a new home for the screen. Then a group of bookshelves with some closed storage in the same finish as the tv cabinet to the right along the wall to allow for storage of some of the toys, as well as a place to house books and media. Take the clock off the fireplace and use that on the end wall where the game table will be. Use the canvas you have on the fireplace, to bring some of the warmer colors of the room onto the grey fireplace. If your DH doesn't want to paint the fireplace, check into staining it. Just giving it a warmer finish would do a lot for the room.

Ignore the critics that think you should have new everything for every room -- not all of us have that budget. Don't discard your furnishings. That you have exercise equipment in this room indicates it's not intended to be a formal living room. While it may well be that not all your furnishings are on the short list of items most of us want to put in our the living room for creating a good first impression -- they're certainly not out of place for a family/activity room. You might want a larger cabinet on which to set your tv in no small part because a taller cabinet will be more comfortable to watch and a larger cabinet with doors would give you media related storage space. With that in mind, if you're wanting to change this room on a budget, sometimes you can find an old hutch or bookcase suitable for use as a tv stand from an "antique and more" resale (used stuff) store, Habitat for Humanity Restore Store, Good Will or a local charity thrift store that will serve your purpose When you are out and about with a few minutes to spare, wake through these and see if something catches your eye. If you are careful not to collect junk -- if you know the measurements of your room/space before buying anything and buy only what you will actually use, then such trips will not be wasted time. Good hunting.

I like the suggestion from groveraxle to mark out furniture locations with painters' tape. The other thing I've found useful is cardboard boxes - wine boxes are ok, bigger ones are better! And when you're ready, I love Ben Pentreath's wise suggestion to hire professional movers to shunt your rugs and furniture around for you. You sit back and feel pampered with a glass of wine, while they do all the sweating and grunting, and don't argue with your decisions like family members and good friends do! You may have to wait a couple of weeks for a good team, but when moving "season" calms down you should get lucky.

the upper right green is nice. so are any of the left column. whites are good. any of the prints except for that striped one, I like. I really like this one https://www.etsy.com/listing/1153775224/new-p-kaufmann-brissac-blue-floral-print https://www.etsy.com/listing/472418967/new-p-kaufmann-brissac-floral-print I'd mix this one w/the same color greens and blues. the print is good because it gives some variation. as long as the print pillows are in the same shades/tones as the solid pillows, it will work https://www.perigold.com/Loom-Decor--Hillside-Square-Cotton-Pillow-Cover-and-Insert-PLOOMROOFTOP-GARDENPOSY-GREEN-L1227-K~LMDE1229.html