I am coming late to the party, LOL, but I think you need to create the sense of an entryway at the door, rather than having it in the middle of all the seating. I would pull the rug over in front of the daybed, running longways parallel to it, and the coffee table running the same way. Bring the black bench forward so that the traffic walks behind it to the entry door, rather than in front of it. Bring the torchiere out of the tv nook and put it in the corner to the right of that. Take the little table and lamp that are there and put at the corner where the two seating pieces meet. Angle the chair just a bit more toward the window with the ottoman in front of it. Move the sofa table to the spot under the window where the small table is now, and move the small table to the wall where the black bench was. Gather all your little pieces of art and group them over the daybed. The one piece looks lost there, but you have the two little pieces by the window that also seem lost - all together, they will have a more dynamic effect. Love the idea of bookshelves in the nook over the tv. For now, I would hang the six tiles that are by the door over the tv in two rows of three. Hang the artwork that is leaning on the mantel. It is too small to lean, will have more presence if it is lifted off the mantel. Take the small vase that is down on the hearth and put that on the right side of the mantel, and move the container that is there over in front of the pillar candle. Down the road, you certainly could use more artwork in the room, and another small chair angled in the corner to the left of the fireplace, or a tall tree as was added by squirrel above, with an uplight to bring more light to that part of the space. I think you could use bigger end tables, perhaps something round between the two seating pieces for interest.

One more floor lamp on the other side of the console. Art on that wall. All four pieces can move with you. TV wall: back to IKEA. No sense spending money for something which may not fit a new space. Notice wood accents which will work with console. Coffee table: no, do two firm poufs/ottomans with a tray atop each.

MAMA GOOSE! This is something I NEVER thought of but I think I love it! Never thought of attaching moving the island and making it a peninsula and attaching to the entry wall! Gotta put this on my Planner 5d program (free online!) and then do a 3D walk through. Love the way that lays out and I could get 4 chairs at the peninsula. So you have sink and dishwasher there on the peninsula right? And yes, in talking to a couple people today I have realized that moving the sink and DW is NOT that big of a deal as for some reason I thought it was. Our basement is not finished so I have been told it should not add too much cost to the project---probably under $1000 and for that it would definitely be worth it! I don't need a closet as there is one immediately on the right when you make a left turn from the foyer. I could either make that a pantry accessible from the kitchen OR....would I be able to open that up so you don't have to walk all the way around the peninsula to get into the kitchen. I'm thinking of how I run back to the bedroom or bathroom for things (again...making a left from the foyer down the hall) and then in coming back to the kitchen I'd have to go all the way around. What if that were opened up. That would be kind of cool, wouldn't it? Thank you thank you! Getting on my 3D program now to check it out and keep you posted!

Agree with @JustMe's suggestions. The white cabinet on the short wall actually constricts the traffic path past the sofa, because it prevents you from taking a diagonal path at the wall - you have to clear the cabinet before you can angle past it. And visually it's a "look at me" accent piece in a small area. Not a good look. I'd remove it entirely. On the wall where it is now I'd exchange the horizontal piece of art work for the smaller vertically-oriented piece of art work that's around the corner from it. It will look bare to you at first but give it some time. Leave that smaller wreath-facing wall empty. That will give you more physical and visual space to move the sofa over. A 48" space between the wall and the sofa arm is sufficient, especially without the white cabinet. Your room will look more spacious with the chaise side of the sofa pulled away from the window. Right now it looks jammed against the window. Center the rug on the sofa. Only the front foot of the sofa needs to be on the rug. Stationary drapes on either side of the window will give your room a much more finished look. It will also draw attention to your large attractive window and to the view beyond. I would go with blue. Not sure what you have there now - is it a blind? Before you buy anything new, see what you can do with the stuff you have. I'd remove the wreath that's centered on the window wall. It's neither in the kitchen nor the living room, and doesn't add to either room. Wait until you have added drapes to see whether that wall needs anything. A good strategy is to remove the smaller decor and wall items until the larger stuff (sofa position etc.) is decided. Then see what you need to add. Sometimes, "filling in" spaces with decor just adds to a cluttered look and draws attention away from the more attractive parts of your room, e.g. the wreath draws attention away from the attractive view out the window. Do you need more evening lighting in the living room area? Maybe an arc lamp behind the sofa in front of the wreath wall? Or plug-in sconces against the wall to softly light the wall without any glare? But that's the step after the big pieces of furniture have been placed.