I would do a large piece of art.

I think I would remove it and put a small game table with chairs so the everyone could sit there at one time and enjoy the time together.

Della70 we actually have a game table right behind where I’m standing to take this picture:)

What is that thin shelf for anyway? No one wants to sit facing the wall in a corner IMO. A small countertop table might be better.

I don't think your French Bisto chair complements your other selections. Do you? Maybe a stool with a finish that matches your cabinets and shelf.

The stools don't really compliment the other design choices. You mentioned liking coastal styles, but that bar area reads more rustic and industrial. I agree that no one will want to sit and face a wall, but if there's a pool table nearby it might be a nice spot to place drinks.

What will the area mainly be used as? I see kids toys but the area feels more adult.