The first thing I would do is move the couch - it's in a very odd location and I would recommend placing under the window with the tv opposite. Then decide on the other pieces that would be needed with this new arrangement and drapery will also make a huge impact. You may want to try and define the style/look you want and looking at Houzz photos may really help. Rustic/industrial would suit your couch and look for a round or square coffee table that fits well, a side table/lamp and maybe a floor lamp on the other side. Art will be an important asset as well and you could also add a nice bookcase along the back wall and if there were closed cupboards on the bottom, great extra storage for toys, etc. I also think the wall color is fine as is - one you add your drapery and art, it will be a nice neutral color as your background.

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