If you divide this space into two areas I would first buy two carpets (Oriental would be best) in warm colors that will look good with the floor and that also look good next to each other. I would advise a third rug for the dining area so that you're not looking at acres of bare flooring, and this whole area will instantly look warmer and cozier. I'm afraid the desk doesn't really belong in this room, and certainly not in that space, crowded next to the fireplace. You need a console under the TV to ground that area. I would remove the large table by the window which looks very out of place. Consider drapes for the large window or some other treatment so it doesn't look like a huge gaping hole at night. With a pretty rug a metal and glass coffee table would like very nice. The couch looks very lonely without some sort of side table and a lamp, and also some pillows.

So I would look at doing a seating area that is angled toward the fireplace. This will free up space in the corner for storage or another seating area, etc. I would do Roman shades or blinds instead of the long drapery panels. I also would not overlay a rug especially if you do the angled arrangement. It will make to room feel chopped up. Also consider a large diameter but low profile flush mounted drum shade light instead of something that hangs down. Try it with your existing furniture. I don’t have all the necessary dimensions to see if it will work in real life!

I'm having trouble finding chaises/loungers that are sturdy enough to be used as benches, while still being light enough to move around without it being a two person effort. Is there any way we can reinforce a lounger when using it as a bench? I'm also trying to not to spend a ton of money, because we're renting and it isn't our forever home. The usual dilemma! EDIT: I just realized the type of lounger I was looking for won't fit in the space, so that opens up a lot more possibilities - I may not need to have to use that particular piece as a bench after all, so that eliminates that problem! The heft and price are my main contenders.

Is that a movable FP? Try swapping it with TV and floating the sofa facing it . Use the two blue chairs at the window and entirely on the rug because they're leggy. You could pull that blue into the dining room with new upholstery on the chairs and even take it into the kitchen with accents. Blue looks great with yellow. Art above FP should be no wider than the firebox opening and should hang 5" above the mantel. The dining chandy is hung too high and is too small. I'd like to see you move it and the table to have room for the cabinet to be aligned with them rather than in the corner. If you want to use all your chairs, I think you could consider setting up the dining room as your TV space with the two armchairs facing TV on the "stone" wall. Then in the living room the dining set could go at the FP end and the sofa and two chairs around the FP placed on your current TV wall.