I would paint the living/dining/foyer the same color grey as well as the half wall. (Putting white/cream on the half wall draws your eye there and you want to create the illusion of space especially when you are looking to put this on the market.) I'm hoping I'm viewing the original pictures correctly. If the hallway is on it's own, then you can paint this another color. Keeping it white/cream may be nice but you could likely add a deeper color there or do a simple technique to add interest and flow. How about wide vertical stripes done with a sheen change? What you do is keep the color the same but have one stripe in a flat or satin and then do the other in a high gloss. I've done this horizontally in a clients laundry room with a light wall finish and it turned out wonderfully.Do the high gloss one on the hall ceiling to help refelct light. Even if you go with a cream on the walls this will make a subtle statement.

Using an apartment sized sectional (two equal sides, no chaise.) put one side against the wall to the right of the FP. Dining will be behind it so try a bench on the wall and a narrow table that extends when needed. Put a built-in bookcase all across the wall opposite the FP, adding a library table and pair of swivel chairs that can be pulled into the other area for more seating. Mount the TV on a swing arm between the windows. You can also build room for a very large flatscreen in the center of the library wall so it can be seen from across the room. You could also float the sectional in the center of the space and mount TV on the wall to the right of the FP. This still allows for the built-in library/bookcases.

Tearose128, great job on your daughter's room. I have 2 girls sharing a room and closet so I can relate. The frustration in your posts are all too familiar. I'm so happy that you have conquered your daughters room and are ready to tackle your kitchen. Good for you! I am addicted to Houzz for creative inspiration but reading through this discussion this morning has warmed my heart. So many kind people reaching out is such a joy. Blessings to you tearose and to all who took the time to comment and offer encouragement, we all need more of that!

Does the tv get lot of glare where it is? Is the room too narrow for both the sofa and chair to face the tv if the tv was hung above the mantel? Or, if the blinds can be closed when watching tv, leave the sofa and chair where they are, get a tv mount from Costco, and hang the tv on the wall where it is but hang it a little lower. Move the outlet. Then hide the tv cords in the wall. Maybe get a wall-mounted console for underneath the tv too. Mounting the console on the wall will give the appearance of more room.