I love how the dining table looks/fits in this space. There is something so inviting and cozy about dinner in front of a fire. Not to mention, convenience of serving food in close proximity to the kitchen. But, will you be frustrated by the TV arrangement? In other words, will you be comfortable sitting upright at the table watching TV? I do think your suggestion of replacing the chairs with something more comfortable is spot on. If you keep this arrangement, put the bench on the fireplace side and some comfy, upholstered chairs on the opposite side, facing the TV. Very pretty house, by the way!
Q