It looks like you may have the best layout now, although I'd move the brown chairs toward the window and closer together so they relate better to the green chair as a conversation group. Also, push the green chair a bit closer to the wall and anchor the group with a rug.

The remodel looks very nice!

Do you walk around the counter [nearest the door]? This curve is like the curve at fireplace. It's wide though, so what about seating as wide as the island?

W 57.3" / D 21.1" / H 17.9"

Rosaleen Mid-Century Modern Walnut Wood Curved Dining Bench · More Info

Area rugs, whether solid, woven, patterned or Oriental would help define the seating areas and would help minimize the sound of shoes upon the hardwood floors. They also make a room feel more cozy. The front feet of the seating pieces should be placed upon the living room rug unless the rug is large enough to hold all the seating pieces. Art on the walls adds color and visual interest. If your town has art shows with local artists participating, a piece or two of original art would be wonderful. If that is beyond your budget right now, HomeGoods and other stores do have some framed reproduction art available. Buy what YOU like.

Beautiful renovation. It's hard to do a layout without measurements, but here's my guess.

Since you mentioned this is where you spend most of your time, make it cozier with additional luxe seating and window treatments, keeping in the style of a historic home.

The sitting area in front of the gorgeous fireplace looks like it's about 15'-0" (fireplace wall) x 10'-6" (from kitchen cabinet to carport door).

By adding a 78" sofa you will balance the kitchen with the lounge area. The rug is 9x12.

I personally hate tv’s above fireplaces and your fireplace would be more of a period focal point without the tv over it. Could tv go on wall where couch is now or on a stand on top of a console there? Then couch could be facing it perpendicular to the fireplace which creates a walkway from the door behind the couch. 2 chairs can face the fireplace.

Or chairs facing sofa beside the tv….one on each side.

Here's pid12652 layout suggestion

Another layout that works. A 78" sofa seems to be the right size in any plan. And I like the elevation of the lounge chair in front of the fireplace. The nice thing is that furniture can be moved around! In any case, the shiplap wall is the focal point of the room and a perfect place for art. I find that putting the tv on the side of a walkway is a great use of space. I agree that a tv over the fireplace is not a comfortable viewing height.

Let us know your comments!

Thank you everyone.  The wall with the fireplace, door and window is 15 1/2 ft.  It is 8 ft from the door to cabinet.  7 1/2 ft between fireplace hearth and edge of island. 14 1/2 ft on the shiplap wall between bedroom door and window next to fireplace. Also will be using this area for meals on holidays because the dining room is to small to accommodate 10-15 people.  I plan on getting a drop leaf table that I can use in this room and be able to utilize for gatherings. Really hope this all makes sense.

Revised floor plan per dimensions above.

The small sofa with chaise is still 78" wide. I always pretend I'm reading by a window. Ha. Tucking in an upholstered piece will make the area seem bigger. I've been designing NYC teeny weeny apartments for years and it's amazing what happens when you create vignettes of seating with art, window treatments and seating.

The rug is 7 x 12 to define the seating area.

The "table" extended from the island is 36" (or the same width of the island) x 72" long. There must be an extension console out there and I'm on the hunt!

You really have to downsize the TV for this room knowing you have another living space. A much smaller TV - not on the FP - would do worlds of good for this charming space.