Purpose of Room: Conversation Room and Family Area.

What you should know: This room is connected to the kitchen, and there is traffic that flows in from the front entry through the living area into the kitchen. I have 3 small children and so I avoid anything glass or with sharp edges, and furniture needs to be durable and kid friendly.
There is either a door, window or entry on 3 of the 4 walls and I can't seem to make it feel nice. I need to keep the furniture from blocking traffic from the entry to the kitchen, but also create a cozy conversation place. The couches are too far away from each other for conversation it feels distant and uncomfortable, and I have tried them in every position I can think of and nothing seems to "work". When I position couches away from walls there is no clear "center" help! I can't angle the couches I have toward the fireplace without cutting off traffic flow, and the center of the wall with the pictures is not the same as the true center of the room. It looks off to me.

The pictures I have attached are of the position that has worked best so far...but I could still use direction...I like spring colors, yellow's, blue's, green's and brown's. I also like natural wood colors, our kitchen which is connected has hardwood floors and oak cabinets.
We are looking to replace furniture in the near future, but I don't know what kind of shapes, sizes and pieces will work in a room layed out like this. I am concerned that I will purchase the wrong things for the space. Basically, I need help! Looking for any tips or help in dealing with either the furniture I have or in possible replacement furniture.

How would you position furniture in this room? What type of furniture would work best for its shape and function?