How do YOU want to change it? What will you use the space for? I would start with the flooring.

If it were me, the long peninsula and carpet would be removed and all flooring be updated to same floor.

I would remove the carpet and peninsula.

The sleek white peninsula and the rug are definitely at odds with each other.

The furniture seems to belong in a dark and enclosed den (with men smoking cigars and drinking whiskey 😆) instead of in a bright, airy, and open room. Is this your furniture?

What’s to the left of the counter?

Your other active thread, linked below, says you want to turn this space into a combined family room/dining room.

https://www.houzz.com/discussions/6413585/dining-family-in-the-same-space#n=1

Yes, I am debating on different combinations. Haven’t made my mind yet. We do have separate dining room but one possibility was to convert dining room into game room if we can combine both family & dining.

Changing rug is definitely on our list.

Furniture is not ours and we will buy everything new for this space

You need to show the whole space, since the room seems to be open concept, so one change will affect another, and make your list of the activities and uses for the spaces.

More pics!

Don't buy anything until you have a plan. It will save you money and angst. Looks like the peninsula could be shortened but not totally removed as you need counterspace next to the wall ovens. I would leave it intact. Set the dining area up at the window end. Place the TV on the wall where the art is in the above picture. I would place a couch in front of peninsula facing TV and 2 chairs where the sofa is in the picture.