What works nicely in a craftsman setup such as yours is a large sofa facing the fireplace with a sofa table in back. Add two comfortable chairs - preferably swivel on either side.

It looks to me as though that there isn't enough room for that setup, Lucidos, especially if the TV stays where it is. Crick in neck time.

If so, I fancy two sofas facing each other (similar to the current setup), but not over-large ones.

I like that ode Lucidos.... I think the only problem is the depth of the living room to fit that would be hard. What about a smaller sectional off that left wall with a little chaise? And two chairs across (in front of the windows) with a small table. Maybe on of the chairs being oversized?

I like that idea too CAP. I had a rug but it was too big.... Been on the hunt for another.

I'm reading the room to be about 12 feet wide x 10 1/2 deep? Katheryn can you give us the dimensions please?

15' (wall to window) and just shy of 11 from built-ins to wall coming off doorway.

I would go with re-imagining the space and putting in something that serves as a couch and a room separator at the same time. With this (below) being a corner sofa with detachable pieces, you can move things around easily.

What I did in the image below was size your room. The images below show various furnishings. If you have access to a printer you can use this image to try different combos.

The sizes of the furniture pictured is:
93" wide sofa
122 x 80 sectional
90" sofa tables one is 18" and the other is 15"
Love seats 73"
Various Chairs 35" and 42"