Take a look at this inspiration. You may be able to get this look by installing a shelving unit next to the door where you wedding pic is and hooks for coats on the other side.

Keep all the toys and coats and shoes on the far end of the room where the coats are now. Use up that wall. You have space to make all those toys have a place and coats and shoes to also have a place. All looking very stylish when put away.

This will give you room to add two chairs in front of the fireplace,

This is inspiration for placement of chairs and ottoman in the room.

The use of that steer as a mock hunting trophy is exceedingly disturbing...

I would paint all the shiplap on the walls a pretty colour. If you want it white, do another coat. The wood showing through doesn't work in this room, it kind of gives it a "we primed but can't finish the job" vibe.

Some nice curtain panels for the windows.

The organization system shown by njmomma is very cool.

Finally, a sofa or two chairs for reading time.

njmomma thanks for the advice! i moved the bookshelf to give me an idea of what it would look like eith shelves on the right side of the door.

lindsey i think you are right about the paint! i will add that to my project list. what do you think about one chair in the corner?

Have you tried putting the chair with the back of the chair on an angle towards window. Back of chair facing coat hooks. so you can see outside also.

Ottoman in front of fireplace. But close enough that you can put your feet on it.

If there is room put end table next to chair.

It will obscure the coat rack and give you a nice visual.

I don't have know your dimensions. Nor am I there.

I am also not an interior decorator. I just love rearranging.

njmomma is this what you mean? If so what should i do with the empty corner?

empty corner..

No the chair was better at the other end of the room :) Easy to pop in and read a book while keeping an eye on dinner, easy to see the back yard and deck if the kids are outside and you're having some Parent Time, close enough to enjoy the fire if you should decide to start using it.

I think the area around the door should be designated as entry space and kept clear of any upholstered furniture that could get mucked up by kids kicking off boots, dropping wet rain coats, etc. You could put down a large door mat that extends from window to the edge of the door, if there is enough clearance under the door for that. And add a bench with storage underneath under the window for putting on/removing shoes.

lindsey, i do agree I like the chait in the corner. It seems to work better for me. ;)

so this is what i am thinking:
-New paint on walls and ceiling, white. (do I paint the trim a different tone of white? )
-New light fixture to update room. (maybe a semi flush light fixture? )
-Corner built in bench with storage underneath with a few coat hooks.

You are so fortunate to have that wonderful space for playing/coats, etc. I would replace the fan/light with just a fan if needed. Eliminate the overhead lighting....very harsh and not flattering to people or things. Then add a couple of small tables and lamps or floor lamps. The addition of curtains will add so much warmth to the space.