Houzz is the new way to design your home.
Love the idea of adding molding to the living room windows to eat up some space and join the two levels of windows. Also, you can hide the top of a roman shade under the cornice of the lower level windows. This could also tie in the cabinetry of the TV corner and mantels.
Love the saying on the arch and the brick on the fireplace.
example of the large space between levels of windows