Put the fireplace on the west wall and put lots of windows on the south wall to get natural light and passive solar heating/cooling. Minimize windows on the west wall.

You need to figure out your furniture placement before deciding anything because the room will not be that big once dining room and living room furniture are in place. Frankly, I don't see that you'll have enough room to float furniture so you might decide that your sofa needs to be along a wall.

Is there any way to add more width to the space? FWIW, 14x16 is going to feel tight as it's about the size of a good bedroom :/

No way to add more width. Thought I would be able to float a sectional or two couches in an L shape somewhere as long as there is clearance for the stools at the island.

Possibility to lose closet and relocate basement door and move kitchen down like this if that would help

Think of it as an enclosed space to serve the function you plan to use the space for, not an empty shell trying to find a use for. Laying out the furniture you need in the space will help you think it through.

Going to try to move basement door and gain more space

Is it at all possible to position a see through fireplace between the

dining room and family room?

Don’t think i would like that, but there are bedrooms right above it anyway

To do an L-shaped seating arrangement, I’d position one sofa (or one side of a sectional, which is personally what I’d use) along the south wall. The other sofa/side of sectional would run parallel to

the west wall. That means the west wall needs to be your wall for the fireplace and tv. While I had a corner fireplace at our last house and would avoid one again, I do think one would be appropriate for your space.

You could still have windows along the south wall for natural light.

Not sure I love having no windows on west wall. I’ve tried lots of different ways and nothing is working great. I may just need to give up the fireplace but I’ve always wanted one

This one is making the most sense to me

It’s hard to do anything while keeping any sort of symmetry with windows

Wondered if I should do something like this with tv and fire next to each other

My preference would be to add the fireplace to the south wall centered in the family/sitting room end of the room if possible so as to be able to add patio doors from that living area to the "covered porch"., then you could put the tv in the corner between the fireplace and the window wall, visible from the kitchen and even the dining end of the room.

Are you redoing kitchen?

Post floor plan as the house is now and how it sits on the lot?

Are you working with an archeitect? What does she say?