A few things to think about since you've got a somewhat cluttery non-functional space right now. That fireplace--hmm--don't know what to suggest since it doesn't work for either space. In my configuration, your dining room stays put since it does work for you as is.
--Face your sectional to form an entryway behind it. Put a console to the left of the window, your TV above it, and your chair toward the right corner where TV is now.
On the other side:
--I normally like the Ikea shoe cabinet but it doesn't work at all. Sell it on Craigslist. Instead build a sturdy wooden bench with cubbies below--sort of a window bench actually-- from the doorway all the way to the far wall. Get an upholstered piece for the top as shown below. This can be wonderful seating for company when you have gatherings.
--Move your armoire against the facing wall, not diagonally as you have it now (If that's possible.) Sometimes people remove armoire doors, put hooks in the back, so family members are encouraged to hang their coats.
--Think about straight hanging drapes to let in more light in the entire space. Consider painting the interior of the front door in a color from your rug.
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Tiny tea house
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