Well IMO you do not have space for both uses and we would need some more meausrements of both the space and your sofa . Is the fireplace functional ? Whwere are the windows an actul picture of the space is always good too.

I would do:

• IKEA wall mount TV credenza to the left of the fireplace
• Acrylic coffee table
• Small scale arm chair angled (couldn't angle in photo)
• Small round accent table for the chair
• Floor lamp for the corner of the couch

Agree that doing a dining area here isn't doable unless its a small wall fold out table, which would mean, no accent chair. Do you really not have any seating in your kitchen?

Hope this helps!