Omg I'm going through the same exact layout issues you are!! What's behind the couch?? Is that a bench or bookshelf? I'm trying to fit my living room area with a three yr old play room lol.

It's a cabinet against the wall. And I'm not happy with any of the suggestions. The room is now empty, with the exception is that cabinet.

Putting the TV over the fireplace will give viewers stiff necks. Could it work over the blue item on the plan? The TV should be at or slightly below seated eye level.

Thanks, but the tv is fine. We've had it there for two years and no one gets a stiff neck. It's not that high up.

Just more options, have you thought of a sectional in the shape of a U

Like the white one from Bassett Furniture $3,000. Some people are anti sectionals especially in small areas, but I think they can work great. What I love about them two people can stretch out quite comfortably and let's face it, it's all about comfy

I like these ideas, but the dining room opening will go right into the backs of the seating area. Not sure that would work.