Something is wrong with Houzz. None of your pictures in your original post are showing up.

Thank you KULRN! So, simple--so helpful! I think I've overthought this!! haha!

I like what @kulrn has suggested and think that would work really well for you. Another option might be, to place the sectional as @kulrn has suggested (moving it as close to the doors as you can, while still leaving enough clearance to comfortably open them) but instead of having the play are behind it, move it to the opposite wall (beside the fireplace, where that picture is hanging). That way the play area will still be visible from your kitchen (I think?) and while seated on the sectional.

Thanks, loves to decorate! That's actually what I ended up doing! haha! Once I got kulrn's configuration, there wasn't really enough space for a play area and it worked perfect! It's amazing how this configuration actually opens up the space and makes it look bigger!!

You have an awful lot of seating in that space. I would remove one or two pieces of sectional altogether dependent on the size of each sofa. If one is smaller keep that with the semi round piece. Otherwise keep the larger sofa piece. I like the play area where it is currently and opening up a walkway/sightline to that area would help. Here’s a staging article that can give you some ideas how to open up the space by breaking down the sectional: http://styledstagedsold.blogs.realtor.org/2011/08/15/how-to-use-a-sectional-couch-to-solve-a-staging-dilemma-on-a-limited-budget/.

Yes, kulrn got what we were gonna say. That layout should do what you were looking for.

Your layout seems fine, but the arm chair area is a dead zone. Do you use that chair? Could it be moved to another room? If so, I'd make a play corner over there with shelves and baskets to store toys.