Is it possible to get rid of that funky fence? I would lose that in a heartbeat. Is the wall to wall carpeting staying? I think you're on the right track with the curtains and fireplace lightening up. This room has a strange configuration with no middle focal point. I hope someone else will have some ideas on how to overcome that.

I like your house -- it has character!

I would place the television on the blank wall shown in your second photo. You could float a sofa in the middle of the room with chairs on each side. Then, place a sofa table behind the sofa.

I wouldn't remove the railing, since there's a door so close to it. I could just imagine guests walking in and inadvertently falling off the ledge.

Because of the off center fire place in living room, I thought about dividing it into 2 spaces adding a little buffet and table that I use for my desk along big wall in 2nd picture. The table could also double as a game table. Would that be too much? We don’t have a formal dining room set. Could my desk & buffet work in the dining area? Thanks!

I would place the table/desk in the dining area.

I would get rid of the carpeting and rail. Paint the room and fireplace. Change lighting fixtures. Then decide what to buy and where to put it.