I had other photos to post but they failed, here's some more. Sorry its a stupid mess in this room...story of my life this week.

This is a panorama view back into the kitchen/dining area, might need to click on image to open full view, thank you!

I would do a sectional (L-shape)...if you're looking into the family room from the dining, it would go in the right hand area...Not right up against the wall...push it forward a little. Then, I'd do two chairs to the left of the fireplace. One where the television is setting now, ( face it into the room, toward sectional sofa), and one opposite (where a sofa sets now, facing it into the room, toward fireplace). Then, I'd mount the television over the mantle on the fireplace. Throw a rug in front of the sectional sofa and put a big ottoman (that can be used as a table) or four ottoman's that push together (forming a sort of table) that can be split and used as seating or as tables to set drinks or food on when the family is gathered. My kids love giant big bean bags too. You could throw a couple of large ones that coordinate with the rooms into the corner or something for additional seating. Something else my kids love are big, oversized throw pillows. the kids grab them a lot and just lay on the floor with their heads on the pillows. They big pillows look great sitting up against the bricks on the fireplace.

With all of the obstacles you described (an show in the pics), The only way I can see to make the room work as one space is to divide it in half (as I said above) and make the television the center point (I think it probably is anyway since this is a family area. You cold forego one of the chairs and do a small game table in the corner with the most wall space (to the left, looking into the room from the kitchen), but it looks like you have a table just over the wall...

About the toys...if you pull the chairs into the room enough, you could put the toys behind them, in the corner. OR, as I mentioned, just do one chair and use the other side as a play area. You can get book racks that hang (they sound bad, but they're really cute) so that the book shelf doesn't take up space). If you do that, I'd do it in the play area and keep them at a level that the kids can reach them. The sectional shelves that you can put baskets in (they sell them everywhere, I actually bought one today at target) are great for books and toys. They create a ton of space.

Can the TV and bookcase switch places? or will the bookcase fit to the right of the fire place?

As much as i hate TV's over fire places, this might be a better option. Then you could float the sofa in front of them and add a sofa table behind it with big baskets or storage ottomans to hid the toys. the play kitchen and such could be where the sofa is now.(being out of your direct sight when you and hubby want to enjoy the fireplace after the kids are asleep;-) One chair could be angle where the bookcase is and the floor lamp between it and the sofa and the other one angle on the left of the sofa.Two tiny end tables with storage between the sofa and table would be great for snacks and the remotes. I'd add more cabinets or bookcases to the right of the fire place. Maybe some of those cubes with the fabric boxes to hid more toys and stuff. Wallpapered Girl Scout cookie carton can dress up plain shelves as cheaper option.). Anyway my basic Idea is to pull the setting are around the fireplace and tv and push the kids' play zone to the left and along the half walls. Put all those plastic cubbies on the half walls or behind the sofa.
If the Tv fits where the bookcase is, turn the arrange to face it with sofa just left of the fire place and chairs angled either side of the fireplace.
This might give you room for a Mommy reading chair in the corner by the bay or bow window.

GOOD LUCK.

this is amazing ladies, more ideas than i have ever heard for my mishmash room. I'll read and sketch to be sure I understand the layouts. Keep it comin' new Houzz friends!

Hate to add to the confusion but I like one focus center in a room. Can you mount the TV over the fireplace? Then you can have sectional seating around that and use the sides of the room for toys and desk and book shelf areas.

We talked about mounting the TV above fireplace but thought it would be kind of awkwardly high for viewing, from the couches anyway. And then the ugly cords etc... The walls are paneled with thick rough barnwood that we painted and its not smooth and even for easy mounting. And we arent sure whats behind it, that wall faces the attached garage so it may well be cinder block?
The room is narrow like 13' so you wouldn't be very far from it on a floating couch. I do watch it alot from the kitchen and dining areas from there it would be fine. Thats why we didnt hang it on the right side either, next to the slider. We just bought it like 3 weeks ago and took home the (ugly) stand shown in the store, nearly $300 :-( . I would have kept shopping for something else more console-y but i am only half the votes LOL. I'll give it a think though and can't thank this community enough for chiming in I REALLY appreciate the feedback...

Can it angle in the corner to the right? then the sofa could also angle toward it in front of the Fireplace.
Hard to tell without measuring or making a floor plan on grid paper. you could make "paperdolls" of your furniture and move them around a floorplan drawn on grid paper. Easier than pushing furniture;-)

Hi there!

I love this part. I would do built in where the TV is all the way to the ceiling with draws. Or place the TV on the wall with a arm if needed.

A L shaped sectional with a long sofa on the right so it extends under the window.

Consider opening the wall between the dinning and kitchen for more open feel.

i say make the mantle longer and mount the tv next to the fireplace, on the wall, have the very top of the tv even with the botton of the mantle... have shelves under tv for media and to help hide the wires.

If you mount the tv above the fireplace, you can get a mount that angles down for easier viewing from tbe couch. Just dont angle it so far down that you can't see it from the other rooms. I like the idea of creating two separate spaces, one for play time and one for tv time.