IMO the table is way to close to the step and the only way to fix it is to have a railing with just an area to step down or up

No suggestions, but you gotta wonder whoever thought this was a good idea!

I would wall it up between living and dining. It's got to be really awkward socializing with the different floor heights and a large dining table. Seems that the dining area is open on the hall side already?

I would definitely add a pony wall with shelves on living room side and you can use top as a serving station in dining room when needed. It will provide safety and still keep the feeling of openness. Doesn’t have to go from wall to wall but placed in centre with an opening of a foot or so on either end. Could actually just purchase a double sided low bookcase and save a lot of money and effort.

When placing chairs near fireplace, pull them more into the room and not squeezed into corners.

Pony wall with shelves

While the pony wall suggestion has merit, I don’t think it would work because of the windows. Consider a credenza/console with it’s back to the dining room. Pull the chair forward a bit...and use the side table somewhere else. You’ll need to finish the backside of the credenza, but it can do double duty between the LR and DR.

Oh my. I have to agree with Kate! How awkward.

Railing or pony wall or credenza. You must have something there. What if Grandma Betty scoots her chair too far back and catapults over backwards?

How about something like this ?

I have a similar setup.. although it’s my kitchen. We have a pony wall. This photo doesn’t show the table because I just ordered it.. but can’t take the chance of someone falling backwards.

Measured drawing, please....including dining table size. The table looks too big for the dining area plus chairs plus people in chairs plus space to walk around people in chairs.