What an adorable house. I'd leave the half wall there as it's a great separation and hides the back of your sectional sofa. I'd treat the "office" area as your child's playroom, or library/office and a place for great toy storage. What is right of the sliding door? The kitchen? Do you have a dining space? You could also use some layered lighting. Maybe a floor lamp left of the sectional?

HI -- I can see you are in baby mode right now and still nesting . So I think that is why your wanting to change things . Your place is real nice and you have nice things with good room colors and stylish fixtures . I don't see a lot of changes needed here . I would not take out the drawer section . I would just add some storage ottomans for the toys . Maybe when the children are a little older , then it may be the time to make some changes .

Where is TV? I agree with Darzy that a separation of space is the way to go. Would like to see area nearest patio//outside doors. I would leave the desk area alone and set up the opposite end for children's play area. Where do you spend the most time?

Generally, when the living space is a long and narrow "bowling alley" the answer is usually to "divide and conquer". So, your half wall is perfect. :)

I like your rooms and love your french doors. You need to think of the area as three different zones. When I look at your pictures, I don't get that alley feel. Your space has so much character, with the exposed brick, the triple windows, unique french doors and beautiful trim work your eye is looking at all of this and not just looking out the back doors.

I agree with Darzy keep the half wall, put the kids toys in the drawers easy for them to reach and out of sight. I don't think removing them will give you more space, especially if structurally you can remove the alcove. If you must remove them, check and make sure that beautiful floor is beneath them. Use decorative boxes and baskets on your shelves and desk top to increase storage. Look for unique rolling storage to put underneath the desk area.

Consider moving the small table and chairs, and put a nice comfy chair in it's place. I would then move the table and chairs to in front of the back door.