this room could be so much fun. right now it seems tentative.it's time to commit to some bold kid friendly colors. keep the blue and green pillows and add coral and yellow. so working with these colors look for a large lstriped rug. larger pillows could be florals, polks dots. finish the sofa with a bright fluffy throw to soften the line.

hang bright salmon drapes. for a more custom look, add an outer vertical stripe of both yellow and green.

buy a wide storage chest with doors, taller than the sofa, for toy storage. put in the wall behind the sofa under the photos. replace the bookcase and red chair with a cute, low childs table and chairs set.
a white floor lamp in that corner.

what about the photos? could they go into a phot album for the coffee table? tj maxx and homegoods are inexpensive sources for large canvases. look for bright abstracts

another idea for that corner with the bookshelf would be to leave it. hang an attractively framed vertical cork board over it for the kids rotating masterpieces. buy a 6' H X 3 panel white distressed screen to hide the mess when companys coming.