I see a lot of visual clutter, especially with all the wires by the fireplace and the accessories (how many throws are there? I counted 6, How many candles?) In comparison, the peek of the dining room (with the red chairs) looks balanced and has a more glam look. So if you can, I’d start by taking out everything that doesn’t have to be there (esp. the accessories) so you’re starting closer to a blank slate, and then add things in very judiciously. How much seating do you need? Seems like a lot. I would also consider losing the ottoman, since it takes up so much space (I’m planning to get rid of mine when I redecorate). Yes, it can be hard to get rid of things but a lot of people find that afterward they feel better.. If you need a peptalk, some people like that Marie Kondo book. Years ago I read a copy a “Clear your Clutter with Feng Shiu.” I don’t even know or care about the Feng Shui part but she got me so motivated to de-clutter, that at one point I set down the book to start purging. And...you can put all the $ from selling your unneeded stuff in a special envelop and then use it for a splurge or go get a massage or something! ;)

One idea might be to add a very short wall on the left as you enter the living room so the opening to the living room is the same width as the entry ... and, by doing that you could put wall to wall built ins on that end of the living area, with or without a tv, and still create two separate sitting areas. I don't understand the "bar" against the solid wall behind the pantry and refrigerator. If you changed the pantry to a "butler's pantry" with a pass thru window, that would have made more sense. Is your "bar" a cabinet something built in? Have you considered either closing or narrowing the door between dining and living room and/or creating your pass thru bar there with your piano in the adjoining corner adjacent to the fireplace near the dining room wall? https://www.decorpad.com/search/butler-pantry-pass-through

I hate TV in my LR and have never had one for the last 40yrs. So I have no issue with no TV I would however face the furniture toward the window since that is really the focal point in the space Float the sofa facing the window leaving the walkway behind it on the east wall have a nice long console table with some decor or a large piece of art above .Put the choirs on either side of the sofa facing each other and a nice large square coffee table. Lighting is of course a real need and once you have the furniture in you can figure where and what you need. I never like sectionals for actual conversation so not to that . My LR is 2 x that size so I do have 2 sofas and 4 chairs but for a nice conversation plan a sofa and 2 chairs are my go to. in a space your size.

For your space, yes you need a bigger rug with all the furniture on the rug. If the rusty red pillows are your accent color, maybe find a neutral rug with that also as an accent. You can keep this layout and add two chairs under the window with a table in between. Or you could move the love seat under the window and add a chair diagonally across as an accent chair. You need some artwork or photos or something above the sofa. Is this room just for reading/ conversation or is there a TV? Do you need any shelving for books or storage or display items? Good luck!