Two sofas would work. Or you could replace the loveseat with a new sofa and recover the two club chairs and keep them where they are, maybe put them on swivel rocker bases. Then you could turn to face the fireplace. If they’re good quality, they’re probably worth keeping. If not, replace them. I don’t think they are dated, they are classic. Unless you are going for a very modern style with the new stuff. The space looks fairly traditional.

I’d replace the coffee table with something that serves all or most of the pieces once you decide on them. And lose the other two chairs.

I like the two chairs. I think they are classic and look very comfortable. New upholstery is an option.

I would consider two sofas facing each other with the chairs on the end. This will give you the option of a L or U configuration.

The woodwork finish in your house along with the floor may not work with a grey color palate. I hope some will address this as I am not entirely certain.

I think two sofas opposite each other would be lovely. The room looks as though it could take a nice long sofa-maybe 92" or so. Best to tape it out or make paper templates that can be moved around for the best configuration.

I just removed one chair from my living room, and it's not nearly as crowded as yours. I'm left with one sofa, one love seat and one chair, but you could certainly have two chairs as in my first picture. I also don't think your furniture is dated, although I would choose a rectangular glass and metal coffee table to give a more modern vibe, and update with new pillows and a gorgeous (and larger) colorful rug, perhaps an Oriental, to make this space more interesting.

The chair closest to the fireplace was removed. There are only two of us and we don't entertain a great deal.

Somewhat different decor, but a more open look without the chair.