I would limit the use of this room to bar/piano/jukebox - entertainment/music. No dining table; it is too much and crowds the space. As far as the piano goes, your choice is best, but you still need to turn it so it is at a 45 across the corner. Never place the "tail" of the piano in a corner. Position the piano so the lid opens and throws the sound out into the room. You also need a rug under it. Have you considered putting it at the other end of the room? Here are some tips.

IMO get the bar and juke box out of there get a proper set of cahirs for the table , place the piano so that the player faces the room get rid of the fake windows and then figure out what pieces of seating you need The 1 st drawing there is no space for the table even with benches you still need room to pull them out and for people to sit. IMO a smaller table and small scaled chirs is needed.

decoenthusiaste is right the Pianist should face the room, not the wall.

There are a lot of other rules for Piano Placement including not placing it by a window or heat vent as the heat and cold temperature fluctuation causes the wood to expand and contract.

(Bad for the piano). In your case you don't have many options, but you may want to consider window film that reflects the heat to protect your piano along with keeping the blinds down.

I also agree with decoenthusiaste that the room is over filled with furniture, but we don't always have the luxury of moving things to other spaces or eliminating/replacing furniture. You are young and I think the most common mistake made when buying furniture is buying over-sized furniture for our space. I just bought a sectional sofa and the store made me sign a confirmation statement that the sofa would fit in the designated space. Dining tables generally need 3' on each side for traffic flow.

Your plan is the better of the two plans. I would get rid of the bar if I were looking at your plan. Once you have the two benches with the table you won't have room for the bar against the wall.

Your husband's plan won't work - Piano is backwards and you can't get to the back bench of the table - again, you didn't add the two benches with the table.

Thanks everyone for the responses! I definitely agree we have too much furniture- once we are able to finish our basement (hopefully in the next few years) we will be able to move bar and jukebox down there so it is a little less crowded. The large table with benches was definitely an impulse buy (23 year old trying to put together a house and it was only $150!), so I will definitely be downsizing in the future to have a smaller table with some beautiful chairs as you suggested Patricia. I appreciate all the piano tips as well! Those blinds are always closed since they're facing to road and a busy sidewalk, but will also talk to hubby about a protective window film. Our piano isn't the most beautiful, but it is over 100 years old and was used in a Theater in Detroit back in the early 1900s.
Once we get the floors all done in that room, we will try out my plan and see how the flow works!

With a bar, a juke box, and a grand piano....where is the dance floor???? This has all the makings of a nightclub!

Do you have another dining area? If so, consider selling the table and benches and use the space as a party/cocktail/music room. I can imagine the jukebox playing and people dancing while a bartender whips up cocktails. Add an extravagant candelabra on the piano and maybe a sparkly chandelier for drama. What a fun space!

One of my favorite movie clips was from the movie Sabrina - "Illusions are dangerous people. They have no flaws."

I often think of this when I see people planning their spaces, especially young people. We imagine our lives and plan our homes based on the illusion of how we will use the space.

Too often the illusion isn't our reality. We don't throw fancy parties, we have a dog that gets on the sofa, we don't spend our lives cleaning and the white on white decor shows so much more dirt than a beige or gray would have.

If you and your husband rarely host dinner parties you may not need a standard dining table. Some of the drop leaf tables that act as a side table when not in use paired with a lifting coffee table could be perfect. A narrow table that goes behind a sofa also works well in many small spaces. If you have 3 kids and have family dinners every night you will need a more traditional dining table.

Figure out what will best fit your needs before replacing what you have. Look at everything and find your style and the colors you love and only buy what you know you will love for years to come. Enjoy the journey.