First of all you have too much large furniture in this room. Find another place for whatever you don't absolutely need as well as all the random stuff. You need to move your sofa and TV toward the window wall. I do not see why the TV has to be so high. Professional advisers say to set the TV so a seated person's eye is level with the middle of the screen. Is there no way to just set the TV on top of the low table directly below it?

By removing excess furniture you relieve the bowling alley feel. By moving furniture towards the window wall you give yourself more space for the kitchen table. The kitchen chairs becomes extra seating when you have company.

I'd like to know what furniture is left of tv: black dresser, and also 2-cube unit. Can you experiment by placing on of those somehow in middle of room [but rotated like a room divider would be] ?

"Small spaces benefit the most from the subdivision of space using the thick wall concept. Rather than making a small space even smaller, the architect here has chosen to use a freestanding cabinetry unit.... By floating the unit and not connecting it to the ceiling, the feeling of openness and light is preserved."

Maxwell & Company Architects

I'd do the reverse, and try to make the area more cohesive. The backspash doesn't work with, so I'd think about doing a diy replacement in a plain neutral tile. The TV unit overpowers the space, so I'd be looking at something more compact, and I'd be lowering the TV. I'd simplify the curtains, and maybe get a small rug for the living area. Then I'd start looking for some decent art, but I'd take my time about it.

How do you think this unit would look instead of the dark furniture?

I am looking at replacing the dining room table for something smaller (and lighter) as the current table is too large to rotate.

How many people use this space? If it's just two, changing out that table would be great. Consider a smaller two person cafe set. Or, you could use a tiny home trick and install a Murphy table where the current table is.

Sorry for a link instead of images, I'm not good with loading images here: google images of murphy tables

I love the dual storage stuff too- like the dog crate that is also a table. Or couches that have storage beneath the seat.

I like the lighter furniture a lot better than the black furniture too.

I think mirrors can act like an additional window (depends on what they are reflecting). Also, landscape art with a trompe l'oeil effect can make the space feel bigger.

Add in a light wood something at the living room end. That will help tie in your cabinets.

First off it looks like you have a lot of stuff in a small space. Perhaps there is some way to declutter? After that try to make the most out of the space. Do you need the black unit under the TV or can you replace the entire wall unit there with something more effective? Then get an apartment sized sofa. Also a rug to bring everything together and a storage ottoman. We like the dog crate side table, that might be a nice idea. Then a smaller table with only two chairs, unless you need the table with four chairs, or consider turning it to make more room.

Multi functional furniture in small places.

go vertical with storage

Shelving

A screen room divider