I think if you go above the door you wont have to worry that whatever you put up would be lined up just right over the couch. However, if you use the larger wall it gives you more options for size.

I have been noticing that the larger paintings that are split up in to smaller frames are popular ( although some people dont like them) and Metal work is still popular.

I love light fixtures so I would remove the recessed light and hang a lantern or decorative light (hanging art). If that's not possible, I would have a series of maybe three pictures/photography on the side wall horizontally. I would not hang anything over the door. Both photos are from Houzz.

Not a pro, but agree that a beautiful light would be the bees knees there. :)

A long pendant fixture would add elegance and ambiance to an otherwise cold entrance. You might also consider an abstract metal/mirror art piece winding up and around (on the stair handrail wall). I think you would be adding dimension to the front entrance painting the front door facing black. Nice space.

You don't need art there. A pendant could work but you'd have to coordinate with the loft space because it would hang right above the sofa...might be a bit odd.

I agree, a long pendant would look really nice! I also think you should darken up the wall on the left side of the photo. Painting it a few shades darker than your other grey will really give the room a nice depth and interest. I like the idea of putting a cluster of frames above the door.

If you hang a new light be careful that it does not cause unwelcome "glare" in your living room. (Bouncing off the TV screen or into your guests eyes.)

Thanks everyone! I will look for another rug for sure and I like the idea of a pendant light but I also worry that it may look odd hanging behind the couch as C F said.

Christy: Do you mean have something go in the same direction as the handrail or do you mean have it on the side of the opening facing the closet door and curving up around be top?

Simon: the cluster of photos look nice there, family photos or no? Also if I were to paint that side wall darker would it look ok seeing that the post has rounded and you will be able to see the current paint colour on the opposite sides of it? I'll post pics from that angle.

Chiflipper, good point!

Bates design: should I just get one rug similar to size I have now or two and place them to fill the whole entrance?

When suggesting a metal piece of artwork my vision was something above the handrail close to the light switch and curl around and up midway of the door. Think something like a tree branch or vine. I do not care for the cluster of picture frames above the front entrance. Again, I would do a cool pendant light. Have fun.