What are the big red scratch-outs? Furniture you aren't keeping? First step is the couch, second is the rug and third is the paint. Paint color should be based on fabrics and textiles (seating and rug) in the room. It can be custom blended, but the furniture is set in stone. When you shop for the rug, it should be 2-4 feet wider than the sofa. Slip it under the front 1/3 of the sofa and have it extend past the ends by 1-2 feet. You can use painter's tape on the floor to figure out the best size for your sofa and room. I'd replace the dining rug too, so the two are coordinated. In addition, push your TV credenza against the wall and put the TV on a swivel base to adjust for viewing.

Tara, your dilemma kept digging at me. I happen to be shopping for furniture for my living room right now, and it is also a challenge - completely different challenge, but difficult all the same. I have been looking at Stressless furniture and one of the photos that they have on their website doesn't have a sofa - just chairs. It is a very modern look, and today, as decoenthusiast pointed out - people don't really like to sit close together. Then I thought about the home I grew up in. We had a family room with a door, then a sofa then a recliner on one wall and across from the door was a big round table where we ate most of our meals. Next to the table was the TV and then my mom's desk. The 3rd wall was all bookshelves with cabinet lowers. My mom and my aunt usually sat next to each other on the sofa, my dad sat in the recliner and the kids sat at the table or laid on the floor to watch tv. We had 6 kids. It worked. The is what I came up with I used a free app from a furniture store on the internet, so colors weren't options and some of the choices were limited, (Why you have a mirror instead of a TV) but I think you could do something like this - maybe two storage hassocks in the corner so that someone in a club chair could use one to prop their feet up. Pillow and blanket could be stowed in each for the kids to use to lay on the floor.

I would get a light colored low key rug bigger than the one in the photo. Put the TV where the sofa is now, and the sofa opposite that with 2 end tables. A swivel chair for near the back wall, and maybe an accent guest chair on the side with the tv near the dining room. The arched entry to the dining room limits how "sleek and minimal'' you can be, but you certainly don't have to be old fashioned or cluttered. Everything sen below is from All Modern with other colors available

Start by making the t v wall more important. Using the wall paint color, paint a wider (wider the better) console with it. Inspiration photo. Add some (real) greenery, put in a wicker plant stand to work with the accent color in the rug. Scout around for LED battery powered wall sconces in brushed brass. Move the rug and the sectional a bit more to the right so you have more of a path by the window to get in and out of the room. Good place for tripod floor lamp. You can make this off-side work if you center the new console on the wall, but install the t v more to the right of the wall so it aligns with the center of the sectional. This is where you hang the artwork. Like this: This is a gallery set of art prints that you can download for $10.00, from etsy, and frame yourself, I'd stick with gold/soft brass framing to compliment brass sconces. https://www.etsy.com/listing/1630091776/neutral-coastal-vintage-landscapes-and?ga_order=most_relevant&ga_search_type=all&ga_view_type=gallery&ga_search_query=gallery+wall+art+set&ref=sc_gallery-1-1&pro=1&dd=1&plkey=2d1e9a12e4474b9cdbe1e05cbf4b8d85437711b1%3A1630091776 As for the window, purchase a lined panel, thinking white with a blue trim. This example of the install will work well. Notice how the rod is hung higher and wider than the window. In your room, you would stack back the panel to the right of the window. Again etsy for the panel. Except you want a brushed brass rodl