The niche space in the upper right corner of your drawing looks like it would make a good play area. Exercise / elliptical could be either be in the corner directly opposite the play area niche, or in the space to the right of the post. Entertainment could be the area to the left of the post. (That might be best with the elliptical to the right of the post.). Perhaps the back of the sofa could be a boundary between entertainment and elliptical, and to block the few feet from the post to the wall at the bottom. The shallow niche(?) along the left wall could be TV location. Play area could have kid accessible shelving for books, games, craft materials — perhaps on the back wall of that niche. Craft table just outside the niche. Playhouse in general area. Perhaps some jacket or towel hooks on the wall near elliptical. Beanbag or big floor pillows shared between the play and entertainment areas. (Possibly appreciated by adults after workouts.) Just my 2 cents. Try measuring the things you want to have in the space, then cut out bit of paper to same scale as the room. So much easier to move around paper things than the real ones. As you find possible layouts, take a photo for future reference. Do the same with things that don’t feel quite right. That can be instructive too.

Fantastic idea and advice!! Thank you so much

Another option with the tv in the niche on the left, could have the sofa with chaise in front of it with a craft table/chair directly behind it, and the elliptical along the bottom left wall facing the tv niche wall. That way all of those activities can face the tv, if that is a desired option. Then the open area on the right, including the larger niche, can be used for play area/storage. Another option could orient the same stacked tv/sofa with chaise/crafting table, on the left side of the room with the tv on the upper wall. If the table is right justified behind the sofa/chaise, the elliptical could slide into that bottom left corner also facing the tv. With either of these options, the right side of the room is open play area. The second option affords better view of the play area, but both options keep the elliptical away from the children’s play area.