If you don’t love the walls don’t try to make them work you will spend time making a thing you dislike drive your whole design , paint a color you like and then see how it goes.FYI take the art work off the wall bove the FP you need something much larger up there.A floor lamp and a table are needed for sure and IMO your funiture is way too bulky for the space. But it is there so unless you are buying new work with it.

Im sorry I just don't see how the wall color relates to the couch. I would lighten it up and go in a different direction. Or sell the sectional and buy smaller scale furniture. Agree with comments about the art, you need something much larger. Also some lighting. Since the kids are small I'd hit up ikea for good value and things you won't break your heart over if the kids are rough on them.