I would simply get rid of the 2nd couch (the one by the chairs) and the large square coffee table and have the chairs flanking either side of the fireplace. Voila! A more open room that shows off the fireplace instead of hides it.

I would place a rug under the coffee table, move the 3 sweater sofa forward and flank it with the arm chairs at an angle beside the fireplace facing into the sofa. Add the table and lamps beside the sofa.
Move the love seat to the living room window where there is natural light and add more cushions to suggest a cosy reading nook.

The balance is off in this room. You might even use two arrangements. I would try, the big couch under the window, the small one on the other wall under the picture and the coffee table in the middle. THEN in front of the fireplace, I would get four chairs that swivel. This room looks like it can handle two arrangements. Try the two chairs ont he big wall where the couch is now. Something about this bothers me. I don't like the big space by the window. OR try the big couch on the other wall and the smaller one under the window.

Put each of the end tables and lamps on either side of the fireplace. Pull the sofa in closer to the fireplace. Turn the coffee table horizontally to the fireplace. Leave the art work where it is.

You need to make a direct pathway from the front door.

Is there a big space behind the love seat? Also, I would think about getting drapes with more weight to them. Lets get the arrangement right first.

I have been looking at your picture and, IMO, I would like to have a feeling of hallway stepping into that room. If you pulled the sofa in closer to the fireplace and positioned a long runner along the wall, leaving the artwork as is, you would get a more cozy feeling. Right now the sofa feels out of the loop.