I would get a long sofa for DH.

DH?

DH = Dear Husband

@Beverly layout works very well. The bay window seating is a waist. Put the sectional in front of it and either leave the bay window seating empty or fill with plants.
The staircase wall is perfect for the tv. It’s the right size. The wall is a waist of space wall… why not put the tv there.

I really like @BeverlyFLADeziner suggested layout. Puts the TV at a comfortable viewing position and maximizes seating. Plus it keeps the fireplace as a visual feature wall.

*Waste🤦‍♀️

Can you take a photo of the wall that has the stairs…the one people believe will be able to accommodate a huge TV for your family? This is a young family who has tried to create some storage for their young children by building the storage beside the fireplace. Perhaps you can add an additional shelf area above the book shelves that have been created, as Beverly has suggested? But, that said, it isn’t necessary to do so. The idea of a long sofa against the bay window is a lovely one. A large open area with a few chairs (swivel), an ottoman coffee table, space for children to play…. Imperatives for a young family!

Thank you all so much for the input!! I have added a picture of the staircase wall so you can see what kind of wall space we are working with. It is an open staircase so that severely limits our ability to mount a tv on it. It's kind of a waste of space. Wondering if that changes peoples' opinions at all. I love the ideas. Thank you all so much!

I think you could do simple console with TV on top. Something like this. You could wall mount shelf for TV and place TV In asymmetrical position to keep registers open below. I have a picture to show as well. Bbl

Something like this.