I know it's tough, but downsizing that much means you needs to be really brutal with continuing to pare down. Two things that seem too bulky for such a small space is your full surround bed frame and that extra chair with big arms between the sofa and TV. Use just a headboard and get rid of that chair. I think I also saw 2 or 3 bookshelves, which is too many for this small space unless you can put them all together & use as a room divider. Good luck!

Good space with the jag in the wall between BR and LR.
Completely agree with the comment about the bed. And putting up a divider in so that you don't see the bed from the entry would be a great idea.

If it were my place, I would install a modern ceiling track for a curtain between the sofa and the bed. The curtain would be closed when company is over to totally hide the bed, and open with the curtain pushed up to the wall on the left hand side of the sofa when by myself. Also, I would balance out the TV by moving the light and putting another storage unit or book case to the left of the TV.

Finally, where is the desk? Or do you work on the bed or at the kitchen island? Is it possible to replace the book case facing the sofa with a narrow table that could also serve as a desk? Just some thoughts.