Hi lskinner1, marie here.
Three words: space-plan, space-plan, space-plan!
As you can see, light, correct sized furniture and solid design plan are critical to the success of a small space, more so than in any other design plan because you have to design with multi-function/purpose everything. Research, ask, plan, and then plan some more - Some inspirational photos for you to help get you started. Have an inspiration point for colour, fabric, and art - to help keep you focused...

Wow, like the inspriational photos. I would keep the couch and ditch the brown recliner and perhaps paint the TV stand. Like the little table. It is really tight.so I would get rid as much of the little stuff as possible, like the flowers. The corners are wasted space--put a low bookcase or chest or basket or something there for storage.

Do the speakers have to be mounted where they are--they are really distracting, and it would be nice to mount them lower or something. or maybe attach them to the ceiling. Too bad they aren't white. Are the ones on the pillars lights? If so, I would get rid of them.

Some small little round tables or ottamans by the couch could be nice--maye one can be near the new chair. You only have one place to hang art--put something really bold there that you love, and pick up the color with the pillows and throw on the couch. Paint the wall by the front entry a coordinating color and it will make the pillars pop. Probably could use a shoe or small storage bench there, umbrella stand and some hooks on the wall for coats.

What is the black thing over the breakfast bar? Maybe some small pendant lights could replace the clunky black ones., or some really delcate LED monorail or cable lighting on the ceiling. lighting.

I was also wondering what the black thing hanging on the wall behind the ottoman was--a roller massage thingy? I hope that isn't a massage chair--if it is, could it go in the bedroom, or maybe put a throw over it or something--maybe you could dye it black.

Love the suggestions, thanks! Wish I could lose the chair~husband's! I like the idea of painting around the entry a different color. The ideas you've both given make me think I can keep the couch and work from there. I'd appreciate any more ideas! Planning!!