I would prefer to see actual pics of the space , a table and chairs there really make no sense at all why not a nice console table with a couple of stoold below it for seating when removing or putting on shoes or boots a piece of art on the wall to the left of the closet and a nice rug.

What a lovely home! What a tricky room! If this was my house I would move the tv to above the fireplace (could also be seen from kitchen from there) and buy an L shaped sectional that would face the fireplace and that great window. Use the existing tv cabinet for storage. I wouldn't put sectional up against the kitchen pass through. Leave a space between sectional and pass through for traffic. Add a chaise lounge where your 2 seater couch is now (a chaise so that you have a clear unobstructed view out that great window). Good luck!

IMO the TV needs to be moved to a completely different spot. It's probably in the worst place possible- in a corner, by a stairwell, across a major traffic path, and hung too high. Move the TV to the wall where you have the picture hanging. Find a nice low console and hang the TV a few inches above it. Rotate the sectional so that it's facing it. This will also create a clear pathway for people to walk. Skip the shiplap and other details, they're not appropriate for the home style. The hardwood floors idea is a good one though.

Room & dimensions w/no furniture. Question is whether to mount TV in upper left corner. As you can see, it would be easily seen everywhere in room (especially by the bar (in bottom right corner). And here's what I was thinking for layout with furniture. Flat screen in corner, cubbies w/storage (for toys etc underneath) ...or perhaps on the wall next to electrical closet? Sectional couch, 2 chairs w/ottomans (perhaps a coffee table?) broken lines represent a rug. Perhaps a tall 'pub-style' table for area behind couch?? And book case/shelving unit along the 14-1/2 wall. Any suggestions are most welcome.