Way too much furniture and stuff and no designated function for any area. Declutter and reassess what furniture you really need and what the function of this space is. It has an identity crises right now. I am guessing that this is a blended family with everybody's stuff and furniture moved in or you inherited stuff or downsized your space but not the stuff. It's a common problem that a lot of people face. You might benefit first from hiring a local professional organizer in your area to help you Declutter and find a better furniture flow for your needs and help you decide what must go and what can stay. Lots needs to go. Hard decision to make on your own. A Professional Organizer can give you the best direction, Www.napo.net.

After that is done, design decisions will become so much easier and clearer and the space will feel more peaceful. Good luck!

This is an old post, however I like going back through to look at the challenges. I would take the two striped individual chairs and set them in the nook as a reading space. Swith your couch with your piano, and place your tv on the opposite wall from where it is. Set the bookcase 90 degrees from where it's at or on the opposite side of that window by your new reading nook. This will create two specific spaces--one cozy, one relaxed.