Can you move the sectional more floating in the room instead of shoved up against the far wall, making a possible walk way on that side. It would open it up a little. Show a picture of the other areas of the room or from a different perspective. A colorful throw over the back of the sectional and some colorful art and pillows will help a lot. Looking at the before pictures gives a better look at the room. Have you considered putting the sectional against the wall cawaps put the art on and the TV on the opposite wall you would not be blocking the room so badly with the big sectional since most will be against the wall. It looks like it could work and you can still have an open view of the fireplace.

Yes, please lower the mantel, take everything off it (sorry, the letters just don't do it and have gone out of style), get a gorgeous painting for the mantel and a large and beautiful rug. For a transitional room I like tribal Oriental rugs (esalerugs is a good vendor), and the ones in polypropylene are inexpensive and sturdy. I would put the lamp with the table near the fireplace right next to the couch and please hang that painting on the right lower. For what it's worth your room is much nicer than the original, which is full of decorating mistakes and doesn't look beautiful or comfortable. You can do much better!

You don't give a hint of what styles or colors you like. Are you traditional or moder?. Have you looked at Houzz or other places for inspiration ideas? You need to do some homework first so that you know what you like and what you don't care for. Do you like warm or cool colors, lots of solids or quite a bit of pattern? Looking at a lot of living and family rooms on-line should be a first step when you're faced with an empty room, so that we can get an idea in which direction to go. You have a very nice space and you'll want to furnish it in a way that you'll be happy with for years to come, where the basic pieces of furniture like the couch, chairs, coffee table, lamps etc. won't be trendy and look out of date in a few years. Please do avoid the brown and black leather furniture that so many people have and which eat up all the light in the room and look as though you couldn't find anything better. This should be a warm and colorful living space that will make people happy to be there. Finding a rug you love may be a good start because then you'll have an idea of what colors and styles of furniture will look good with it, and that will also influence pillows, accessories and art.

The rug makes the room very traditional. To create a more modern design, look for a woven solid color rug. Paint the room to match the color of the fireplace or darker. Move the small bookcase somewhere else as the scale is too small next to the fireplace. Keep the large sofa under the window, but bring in the love seat onto the rug, closer to the sofa. bring in the occasional chairs onto the rug at a 45 degree angle to each other. Eliminate the small table lamp and purchase a matching floor lamp like the one on the left of the fireplace. Have both floor lamps on either side of the sofa. Install solid curtains panels, ceiling to floor on a simple polished nickel rod with very simple finials. I would like to see pocket curtains, no rings, no pleats. Just simple non movable panels from corner to covering the vertical molding on either end. The fabric could be a semi sheer woven fabric. I would send you some inspiration pics but I am having major technology problems this week. Ugh. The room layout shouldn't be so scattered. Think of it as a "conversation pit". You can use a much larger coffee table.