Most people can't discern 4-5" within that number of feet, if that's all it is.

A step down will not constantly trip people. But a ceiling that will most likely be 7.5 feet after work is done is a big mistake. People can definitely tell the difference

A single step down constantly does trip people. People can't unconsciously discern level changes of a single step unless there is an obvious materials change at the entire level change, or it is in a doorway. It usually takes between 14-18" level changes (2-3 steps) for people to predictably discern level changes.

Why would filling in a 4"-5" recess require a 6" change? It will brought level to whatever the rest of the floor is, they aren't going to raise the rest of the floor an additional 1-2".

There are injury attorneys who actually specialize in this sort of tripping hazard and they all talk about the hazard of a single step:

https://www.slipandfall.com/blog/2020/october/are-single-riser-or-short-flight-stairs-more-dan/

100% raise the floor. The whole house will feel larger.

There was a thread recently with a similar topic and OP came back to say they finally raised the floor and wished they had done it years earlier.

Definitely flatten out the floor.

If you want a higher ceiling, could you open up a part of the attic /go for a vault?

I’m curious if a faux tray ceiling would help give an illusion of more height. Unless you have visitors who are over 7 ft tall, no one will care.

It’s a 2 story house so we have the second floor limitation right above.. won’t be able to change the ceiling without essentially tearing everything down and rebuilding the house.
Ultimately, I just want to see if more people would take a low ceiling or a sunken/step down living room, given the binary choice.

Well nobody's going to hit their head on a ceiling that's 92" instead of 96", but people will trip on that step.

I am surprised though that the ceiling also steps down so it's only 96" in that area. I am assuming it's 96" in the other parts of the house where the floor is higher, or is it 92" in the rest of the house? Usually the ceiling is slightly higher in a sunken living room especially if there is an upstairs--so the second floor is all level.

These days an 8’ ceiling feels low… most new builds strive for higher ceilings… in hot climates heat goes up.. I get claustrophobia in low ceiling areas.. do something to make an interesting feature of the step down… you won’t regret it

Who do you know who enjoys feeling claustrophobic.. your own question .. sort of answers the question…🤷🏻‍♀️

Go back to you own idea books… no low ceilings there🙈

I’d keep the step down living room.

I like them.

Those are all 2-3 steps down, which is what they should be and is I'd keep those too. The OPs is 4 inches.