Cute space with tons of potential!
I would totally flip this room around.

-Couch comes away from the wall, perpendicular to fireplace in order to 'define' the living room space as separate from entryway.
-A shelving unit (looks like you could use some storage space) and a side chair or two in front go where the couch is now.
-Get rid of those Ikea tall lamps. If you need lighting, consider something overhead, maybe a side table with lamp beside accent chair.
-Desk comes away from the window (there is way too much stuff on it, looks like a dumping ground anyway) and gets put against the wall with the staircase. That way you also get a little defined work area over there. Bulletin board over desk and a filing cabinet in the corner can help to keep things organized.
-Under the front window, add a bench with seating and pillows and storage for all those shoes. Get rid of your current shoe storage as it doesn't really work.
-Get rid of those curtains on that window. Add a roman blind instead. Pretty pattern or white. If you are worried about privacy, consider window film for the window.
-Add a small side table where the current shoes are for keys and mail. You would have a small area there to keep one or two pairs of shoes that get worn all the time, the rest get put away.
-Get rid of that coat rack in the corner. Pair down coats according to the season and figure out if you can put some in temporary storage.
-Add hooks to the wall on the other side of the door for purses and a few coats.
-The other drapes in the room should reach the floor, not the end of the window
-I'd put a pretty rug big enough to go under the front of couch and chairs and coffee table.
-Take a few things off that mantel as it looks cluttered. Keep mirror (or change to piece of art), keep flowers on one side and two or three photos in frames arranged together and not spaced out.

Wow, that was a lot of good advice from Cara and spot on. I have nothing to add except to say, if you do the above, you will have a lovely room.