Love the color of the walls and that wonderful paneled wall. I agree that the tv is in the right place on the paneled wall. Here is a floor plan which may work for you. Use the space that is not under the catwalk above as the seating area. This way the walk thru will be under the lower ceiling. Tuck a 87" wide sofa with a chaise end on the right of the fireplace with a console behind. Install wall sconces for lighting at the console instead of lamps. Lose the big lamp (it's ver nice) and use smaller scaled floor lamps. Get a matching 66" loveseat and angle off the sofa. this will create a more open layout and not so boxed off from the kitchen. Add two matching swivel chairs. The coffee table is a 48" diameter with four round ottomans or floor pillows. The rug is 12 x 15 so that it anchors the furniture and includes the paneled wall and the fireplace into one cohesive area. Along the staircase wall is 10" deep low cabinet or bookcase up to the ceiling for games, books, etc. Something like an Ikea Pax with frosted doors, simple and functional for storage. Hope this helps.

Can the loveseat by the front door replace the chair, creating an L shaped seating area? If you can move the coffee table in front of the other loveseat, I wonder if you'll have a clear pathway from the front door to the closet to the hall (?) door.

Without measurements of the room and sectional, I’ll wing it and suggest you try turning it with the the back to window and doors. Pulling it away from them, hopefully it will give you space to walk behind it. Then put the t v in the space of photo # 3.

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