It looks like your dining table needs to be pulled out of that niche. Your furniture placement will create the "distinct spaces" you desire. Try to center the table under the light and turn it the other way. Also, the red paint color is a little jarring for that small bump out. I think if you paint it the same color as the kitchen, it will have better visual flow. I would choose a color that goes better with your flooring. The current yellow is a little too bright and makes the flooring look drab. That large, awkward wall could benefit with large artwork or shelving as long as you keep it shallow. I think the real problem is the traffic flow goes right into the back of the sofa. Can you post some pics of that room?