Three ideas -- please try them and add photographs:

1) Try pulling it all forward, toward the fireplace and the TV. Let the traffic from the bedroom and the entry go behind the sectional.

2. Pulled forward and make a 1/4 turn to have the chaise parallel to the fireplace and the sectional open to the entry. The sofa section back will be toward dining room /kitchen wall.

2) Styling the sectional as two sofas - The chaise piece parallel to the fireplace, backing to the window, the sofa section back to the entry.

Yes, I think it is too jammed up to the walls. No more mirrors. You could go with a set of three large rectangular framed posters.

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It looks like the one that faces the TV should have art and the one that faces the windows can have a mirror. Here are some good ideas to look at from some of our designs:

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Here's some suggestion for your wall you might like......to know more about my Art work and collections please visit my shop -

http://www.pooviartgallery.com