Perhaps rotate the sectional. Not sure what is happening on the other side of the room.

Agreed, it is hard to tell about other side of room. Do try to put the sectional on wall perpendicular to TV. See if that works better for your needs. This may be the best layout until you get new furniture or a bigger place.

I am not a designer but when I look at these photos I am taking into consideration the livability of the space. I can see that she is trying to create optimal TV viewing so I think she would lose too much by rotating the sectional. I do think the space would open up a lot if the sectional was against the wall so if there would be a way for comfortable TV viewing with it against the wall, I would do that. Perhaps the TV could be mounted on the wall we cannot see? I imagine there must be a door to another room there. I would consider removing the small table behind the sofa. By doing this you could gain a bit more space by moving the sofa back closer to the edge of the room which is anchoring your space.

The other side of the room is a desk, door, computer and fireplace. I can't move the tv to the wall you see as the sofa would block the door. If I move it to the wall you don't see, then I need to find somewhere to put a desk. Mounting the tv is fine but we would still need the stand under it to hold the media.

I think the key to designing an amazing small focus is to actually not focus on the fact that it is small. Great your dream space. Incorporate all the things you love then devise a plan to make them work with the space you have.

I have an amazing blog post that I think may help.

http://timothyriversinteriors.com/2015/01/19/decorating-a-small-apartment/