Search the box above under Ideabooks for the phrase "managing media." I'm sure you'll find some clever ways of getting a handle on this dilemma. Looks like the kitchen could use some organizing too. I'm thinking the dining table needs to go under the pass through and the other side of the space can be devoted to media and seating. I'd replace the vertical blinds with black out drapes to ensure good viewing, placing the media on the stairwell wall and hiding much of the gear in that closet at the foot of the stairs. Pros always look for a nearby closet to stash all the electronics. Cord covers can be purchased to hide a lot of that if you don't have WIFI.

Your interests in media can be organized in a sleek look that can tame the stacks and miscellaneous shelving you've acquired. Ikea has some great pieces that can be combined to fit your space and be very attractive. You could make a media wall and then rearrange furniture in a more comfortable way. http://www.ikea.com/us/en/catalog/products/S39046064/