Suggestions needed for this room are mostly around color, furniture layout and flooring. The current flooring is a berber but the adjacent area (behind blue love seat) is tile which I plan to change to an engineered hardwood or perhaps even the tile that looks like hardwood. I am not sure whether it is better to have uniform color and flooring throughout all of it to make it appear larger or vary between the two main parts to separate function.

Picture 1: Coming down the stairs (from the kitchen) to the left is just a storage area that will remain that way. The living space is to the right and also behind the staircase

Picture 2: The entertainment center must stay - is a nice newer espresso stained wood. The blue chair on left and light colored furniture at the far end of the room can go but the leather love seat and leathr oversized chair and hassock are in really good shape so if they could be incorporated into new design that would be ideal.
This is a walk out basement but the wooden shuttered window at the end of this part of the room is looking at the bottom of bushes - nothing pretty.

Picture 3: Looking out toward the walkout-doors you see a table and chair set that I want to keep but there is a custom-made but dated maple 'dry sink' (which can go or be painted) to the left of the table and beyond it are oak cabinets and counter/sink for a small wet bar. Open to changing all of that - at minimum updating to granite.
The reason for the coat tree holding beach towels to the left of the doors is that the doors open to a deck with a hot tub on it.

Picture 4: Created a small seating area but the oddity is that the full bathroom is on the right between the white couch and oak entertainment center. The couch is a sofa sleeper which as seen hardly any use and having it near the bath room makes it decent for overnight guests, but while the upholstery is in great shape I feel the camel-back sofa is dated.. I have an off white shag rug currently in front of that couch. Need to change lighting and figure out whether to keep this space as a seating area and what to do with entertainment center..Seems it would be a nice game area once I have grandchildren.. but currently just adults use most of this space.
Definitely will be removing the sconces and that end table/lamp beside sofa.
Would like to put elliptical back here but ceiling is not high enough to use it in that part.

The dimension of the carpeted area is 30x13. The area behind the blue leather loveseat is tiled. It's dimensions are 30 x 11, plus the area near the doors which is 9x5. In the tiled area, we will definitely be keeping the table and chairs and the two shag rugs.