Center the rug with the fireplace. Take the bookcase out of the left corner of the room and put that in the space between the kitchen and FR, where the console table now sits. Move the sectional down toward the fireplace, (after centering the rug), add an end table to the outside of the chaise part of the sectional. Someone sitting there wonâÂÂt want to move to get a drink off the coffee table. Be sure there is a lamp there as well, to light that corner of the room. Move the armoire to angle in the corner where the sectional was sitting originally. Use it for storage, perhaps add shelving or even a pull-out shelf for a computer center which can be closed up and put away. The piece is very nice, and gives good height to balance the fireplace and high ceilings. For now, try the console on the wall to the right of the fireplace, and place the new flatscreen on that. Later you may prefer a more substanial cabinet, which can hide other components and store DVDs, etc. If you do that, then try the console table behind the part of the sectional that has its back to the kitchen. Add a comfy upholstered chair in the corner, a bit closer to the fireplace, where the armoire was, along with another small side table and lamp.

I would put TV on the short wall by the FP so both could be enjoyed as a focal point. The TV gear can be stashed in the closet behind it. Float a 3-seat sofa perpendicular to the balcony sliders with two swivel chairs opposite it; all of them around a coffee table. Place a drop leaf dining table against the "south" wall. Only one leaf needs to be up for the two of your, and it can be pulled away from the wall and opened for guests. If you only entertain a few times a year, consider renting extra chairs for those occasions. If you do dinner parties more frequently, two chairs can slip under the two ends of the table and two could flank it on either end. A third pair could go in the second bedroom until needed. Mixing and matching chairs can be interesting, and pulling them from other rooms works too.

I’d try to continue enjoying fireplace, watching TV witth two areas, but with the objective of not splitting room. I would rearrange fireplace area (new furniture if possible to suit leather and in this set up, swivel chairs aren't needed). Leave space on right open and could warm up/ground with a rug. Not sure if space allows, but should be easy to figure out. More comfy chairs than above. On TV side, try moving the recliner, again to open up the room. Thinking couch could go under window and two chairs along the back wall. Suggest large art and a coffee table to create a more cozy space.

Thanks @Beverly - this is meant to be a 'light' and neutral room. Sort of - I struggle with that because I like color and the neutral gets boring to me. I thought gray/tan would work together - I actually just bought that rug which is supposed to have the grays and browns pulled together lol. I should have pitched my idea here before buying. Thats def interesting with a more square art above the fireplace! I will have to play with that. @Patricia Colwell - thanks for making me draw the scale diagram. Def a useful exercise! Here is an image of the measurements and the logic behind my bench/daybed. Its one of my fav spots to sit and read as its south facing and looks out into my backyard.