Before you spend any money on furnishings, take up the rug...it is exacerbating the smallness of the space. Put a chair at each window and face the sofa to them.

Glass or acrylic coffee table and rug under it only.

Piano can stay where it is.

I like those ideas. I actually was contemplating an acrylic table but was worried it could look too modern for the space. I like how the chairs in your picture are smaller scale and lower in height.

I moved the furniture and removed the rug but I still am not liking any of the furniture. It’s not my style. I’m not feeling inspired and hopefully someone will have more ideas.

I can see your dilemma first. What a beautiful room! Seems to be more of a seating area than a family room, correct? And yes, unfortunately, the size of the furniture is too big for that space. Let's fix that!

1. Put the rug back, lol. The size you had seems appropriate. Without it, it looks like your furniture is floating, or the movers just plopped it down. Furniture placement needs rugs to help delineate the space. You Should only need the front of the legs( of all furniture touching the carpet). Try layering a more modern/ or your style of rug on top of it, and this will give you some inspiration for your style and the rest of the decor you want to put into making it less formal- which I think is what you're saying.

2. Move the piano in front of the windows; it is a beautiful piece and needs a focal point, not tucked away on a wall. Add one more picture below it, use one of the chairs on one side(maybe the side closer to fireplace- add a floor lamp and a small table. Add some greenery next to the piano/ closer to the entrance- something tall- you will have to play with this since I don’t have a floor plan and the size of your furniture.

3. The other chair has to go from your grouping. Sorry. You can also try moving it to where the piano was with another bit of table. You need to free up some room. Too many big pieces, all pushed together.

4. Add window treatments to the window- something off-white and make sure they kiss the floor. I would almost paint your casing black (only those two where the piano will hopefully go). This would tie back into the piano and make it much more architectural.

5. Add a more modern mirror to your fireplace
   Here is some inspiration, don’t mind my sharpie drawing.

6. Adding more accessories like / throws/ pillows/vases that are more your style will make it look less formal. Right now, it’s giving me some library vibes.
   My apologies for any grammatical errors, Typing, and brainstorming all at once. Haha
   I hope this helps!
   

   

Oh wow. Lots of things I would never have contemplated. I will digest this and try moving things around again. Thank you!

Okay- put rug back and moved piano. Removed a chair. I added a style that I like for inspiration.

I don't have a piano but have read many times on Houzz not to place it in front of sunny windows.

I like the 4 chair idea, but if you keep the/a sofa I would put that in front of the windows and the chairs across from them. To me, the sofa back blocks the view and entrance into the room with the current change.

The piano in front of windows idea seems to work here…still mulling it over. I feel like 4 chairs around a table would again be too cramped but I’m not sure.

move it over there and see how it looks! Everything is worth a try imo :)

Here’s what it looks like with piano by windows. The nice thing is that it frees up the other wall to put a desk, which would be used everyday probably.

I would move couple chairs to the windows instead piano.