How about one couch facing the fireplace and the other facing the tv? Sort of L shaped. Lamps tables and maybe an area rug will complete your room.

“My” before:

Having all the seating pushed against the walls is contributing to your living room looking oversized. Float the furniture in the room as Erin suggests.

The wood is pretty (though I get that you aren't as enamored of it as your husband), but between the floor, walls, and beams, it is a lot. You will probably want to cover up as much of it as possible without letting your husband know that's what you are doing. A rug to ground the seating area (big enough to extend at least under the front legs of the sofa and loveseat). A couple pieces of artwork to flank the wide doorway (one LARGE for next to the guitar). Side and/or coffee table, plus some table or floor lamps will help pull it together.

If you can move the lighting to be more centered in the room, I think it would look more balanced. If you don't need/use the ceiling fan, replace it with a contemporary light fixture (depending on your climate, you might really want that fan, I know).

In your case, I’d leave your ceiling beams stained wood. Paint the panel led walls and cabinets white. This will help tie in the white tile floor and kitchen counter. When you get that far, you may decide to paint the kitchen cabinets. ‘Perhaps a warm putty color...or even a “color” if you are adventuresome.