I am trying to decide if I should make this room a dining room or formal living room. It is long and narrow and opens to our front door and also into our kitchen. I prefer a dining room but we already have 4 bar stools on peninsula (shown) and a breakfast nook with 4 chairs. Worried it might be more seating than we need and maybe a living room would be more useful. Also, is it weird to enter a home into the dining room?

The tv on wall is being taken down. The fireplace and wall needs to be redone but not sure how yet. I am leaning toward stone.
The floors have been stained dark. Walls are BM Stonington Grey.
Basically it's an empty slate. Any ideas?