I think some separation from the entry is nice I do not howerver like the cabinet beside the FP I would have put the TV there on an articulating arm instead of the too high position above the mantel. What is the ting on the other side of the FP on what looks like a ledge. If you google entry dividers you will find lots of really cool ideas instaed of the cabinet this is just one idea

That piece will be moved back to another spot once my seeds sprout for our garden! I needed something to put it on so ignore that lol. The other side of fireplace is a built in bookshelf that also definitely needs some work eventually... I like the see through divider look! Thanks!

If you are going to put a screen or some other permanent wall type of object there, then I would just leave what you have. I'd want to put a chair next to the short wall where the rocking horse is and store shoes in it. Then you'd have a place to sit and take shoes on and off. But maybe it is too narrow for that. I'd store extra canned goods in it.

If you are not using it for storage, I'd get rid of it. But then you will need something else to create some visual separation, such as a runner coming out from the door and a large floor plant where the pony wall is currently located.

I would keep it. It doesn't read as a skinny cabinet. It feels like a pony wall--one that happens to have hidden storage. You can put a nice chair or rocking horse in that corner, but you couldn't as neatly if the wall/cabinet was gone.

I would remove the built in before you tackle the floor.

You can always add back something to divide the space, and change it up when you tire of it.