How wide is the room? A 90" couch in what you describe as a small room might be too large. Could you add an ottoman upholstered in the same fabric as your current couch and go with that to form a kind of flexible sectional? Then tuck a round coffee table in front of the other end of the couch. I think you can work with a lot of what you have just be taking away some of the dated pieces.

Further thoughts:

--Remove dated items: coffee table, the slipper chair, the little bench on the right, the table between the two club chairs, the lamp/side table combo on the left. They add to the formality and break up the space too much.

--Paint the room a bright white and use new art, small pieces, and a bold rug to bring in color.

--Add a couple more modern looking side tables for the club chairs.

--Yes, a new modern rug would add a lot.

--Renovate your wall system by removing the curvy top and widening the space for the new TV you're getting. Build out the wall system so that it's wall to wall. Repaint it.

--Change out the accessories on your mantle. Here's a link with some ideas. Note the third photo down with the playful Marge Simpson/Mona Lisa art and kids toys on the mantle! https://www.houzz.com/magazine/12-inspiring-ways-to-decorate-a-mantelpiece-stsetivw-vs~33832371

--Put some drum shades on the two remaining lamps. Put the floor lamp in the left corner as a reading lamp.

--Add a small matching ottoman to the left club chair. With the big coffee table replaced by a round one tucked in front of the couch, you'll have room for an ottoman even if you get one for the existing couch.

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