Love you remodel - what a beauty - went to your home page to see the transformation - It is an awesome finish!

I so feel your pain with the light in someone's eyes. That drives me bananas. I find that I like to use overhead lighting if at all possible because it avoids that problem. Is there a way to angle the light just towards the reading chair and away from other seating?

Believe it or not, I have a room in our home that is 20' x 12'. I have had furniture in it set up every possible way. Our difference is that the entries to the room are flush with the outside walls, so we have a couple of easy chairs and small table in the center, with couches on either side. TV as you have it. Only problem with this is with guests people have a tendency to group into two separate areas to keep the shouting down. Otherwise people are trying to have a conversation across 20 feet. So my suggestion is either set it up as you have it with a grouping in the center, or two groupings one on each side. Could put the TV on one end wall to anchor one grouping.

Congrats on your new home! I think the neutral colors are great for this space. I would suggest adding canvas wall art that is easy to put up (and take down) if you aren't ready to commit to one theme or color. Good luck! http://www.lot26.com/s/Canvas-Wall-Hangings