are the pieces next to the mirror decorative or are they for hanging things on?

Yes, they are. They're coat racks.

https://www.cb2.ca/barker-matte-black-vertical-wall-mounted-coat-rack/s348793

You have a large wall there, the mirror is too small. You could do a much larger mirror and a larger bench, and change the area rug out to either a skinnier runner or just a mat in front of the door.

Do you have a photo of the bench that will replace the piece in use now? I think a larger mirror as K R mentioned would look better. Something tall and vertical that complements the new bench.

I would place one of the coat rack pieces on the wall to the left of the front door so that it's not a "front and center" view ('cause it's gonna look messy when being used). Then, put a chunky console table or long, narrow chest under the mirror. Add a lamp with a hefty base to light the space.

Here's a similar picture of the bench I had in mind.

Here’s a mirror possibility, though I can see in my rough mock-up it should be raised just a bit, or look for a taller mirror, I think jewelisfabulous has a good point about messy coats in such a prime spot. I think I imight move both your round mirror and the racks to the left of the door and place art above your new bench.

Thank you all! I really appreciate your insight and ideas! It's nice to get different views on what I can do with this space :)

Do you have a closet for family coats, and are you actually going to hang guest coats on those hooks? Sorry, but it looks like you have a very nice house and what you are doing may be functional, but it doesn’t look good. I would do a tall console table with a mirror above, and hang coats elsewhere, if possible. If it’s a side entry and not the main entry, ignore.

Thanks for your feedback ShadyWillowFarm

Yes, I have a closet right around the corner that holds the coats and shoes for my family. My concern was having functionality when I have guests over. But I think you're right - I should be using the actual closet for boots/shoes/coats and having a more inviting space as a main entry. I appreciate your idea!

You need a longer runner. Bring it to the end of the mirror wall. Do something colorful, like a kilim.

It is also a good spot for wallpaper. This wall is wallpapered

Pottery Barn