Here’s an additional view of the main mess!

if this were mine, and had children, I would find a tall freestanding Armoire or cabinet to divide the Entry and the 'living zone' an area rug and visual barrier and some hooks on the wall.

you can aactually divide the room into three zones... entry, Kids play zone and the dinng (put that tall hutch in the midle of the space facing the dining table to create a cozier dining area

The children always have prioority, they won't be taking over the home forever.

For your sanity/piece of mind, make an attractive entry/barrier and feel at peace.

Thanks for your thoughts! I’m a little confused as to where you are suggesting the armoire to sit?do you mean near where the current toy box is?

Just trying to figure out what else is happening in your house. Where do you sit down and hang out together - watch TV or read or chill out? How many years have you owned the dining room set and how many times have you used it? When your kids are playing in this room, where are the adults?

First question is what can be given up?

Given dining table is for show/holidays, I’d sell and use that area as the play area. (You could buy2 foldable tables that can be stored away.) There are lots of articles re: toy storage solutions, which is key.

If a table would come in handy for arts/crafts, homework at some point, etc you could add a banquet with toy storage and use a portable table when needed and would be a great spot to read to your children.

What can be moved to another room?

Exercise equipment and some toys? My son moves items elsewhere that their son has temporarily lost interest in (how often is car used). The rotation actually creates a new found interest.

The front area’s usage?

You mentioned a games area. Do you have a basement? A family room can be child friendly and easily tidied up (include storage). Decide on how the space can be used to your family’s best advantage and plan from there.

You have a nice space, it just needs to be juggled around a bit.

I'd visually define the entry with a rug.

Switch the dining area and the play area.

Put a rug under the dining table, again to visually define the space.

Purchase a low long bookcase and use it as a room divider/ clutter hider between the new dining area and the play area. A tall one might be a climbing hazard.

Was going to suggest ideas similar to @deegw . You need to separate the areas. Rugs do that. Look at ruggables they are easy care. Make sure the rugs are sized appropriately. Don't skimp. Make sure the dining chairs stay on the rug when pulled out to sit down. That means at least 2 feet larger on all 4 sides than the table.

Since you don't really use the dining table, I would get rid of it or put it up until your kids grow, it's using real estate that would be better suited for the stage of life your in. You can always get a folding table for when you host a holiday, cover it with a nice linen tablecloth, wala! I would create a seating area in the front area - a sofa to separate the rooms and provide "cover" for the play area, a love seat along the window area, a chair possibly on the outer corner (see how crowded it looks and walk space), and an area rug underneath the furniture. I think it would give a welcoming first impression, provide a place for adults to socialize while kids are playing and provide a reading spot with the kids. You could then place your excessive equipment behind the couch, as to not have to walk through the play area to use and hide it from sight when coming in the door. Place cabineted storage or open storage with baskets for kids toys under the pass through window, providing good sight lines across the room. You could even add a short bookshelf on either side and put pictures above them to spruce it up. Your home looks beautiful, good luck!

I forgot to mention coffee and end tables, decide if you want to leave the floor open for kids to lay on the floor but an end table or two would be nice.

I wouldn't move the dining area away from the kitchen -- that just guarantees you'll never use it. Add a couch and a rug to the play area, so that adults can be more comfortable when participating there -- it can double as the foundation of a greeting area later. Could you use a screen to separate an exercise area along the stairs?

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Agree that we'd have a better sense of what's going on if you showed us the family room that you use...

Some ideas to help section the area, which may help between the dining and play area, and again to create an exercise area. There are free standing examples that may be more suitable….

You need to move the play room to an area near the kitchen so you can keep an eye on the little ones and get things done. Where are you even sitting with the current set up? The current play area should be set up as a living room. In a few years your kids will be old enough that you don’t need to have eyes on them all the time, and you can put the bulk of their toys in their rooms or another designated play room. Right now you can set boundaries wrt the toys and activities allowed in various parts of the house. This will be helpful to your littles as they get old enough for preschool and the need to comply with more structured situations. A special small art/craft table where they can make a mess without damaging anything, floor space to set up train tracks, a quiet story time space in the adult living room. You might not be 100% effective in containing the youthful exuberance, but it will allow you to have a more adult entryway and still have fun with the littles.

No free standing anything other than low, wide, sturdy bookshelves with little ones - ever. How is the exercise equipment secured so kids don’t play on it? Setting exercise equipment behind a sofa invites climbers going over the sofa and falling on equipment. Can exercise equipment be moved to antother location in the house?

Don’t get some huge piece of furniture that the kids can’t reach and is a tip-over hazard. Just get a couple (low) cube shelves with baskets for toys and a big comfy couch and chair for the kids to lounge in. They will grow out of the toy phase before you know it. Then you can set that room up properly - with grownup furniture. Get rid of the elliptical. Is there room for it anywhere else - basement, spare room, etc.

Get rid of the dining room set that you don't use. Situate a sofa in the room far enough away from the wall that the exercise machine can go behind it and not be seen. Toy boxes and storage units are get opportunities for kids to learn to put their toys away. But, if you want a space where lots of play things are out in the open, then this room is always going to look like a preschool so why not make it also obviously look like a gym too?

Do you have a sofa you can use as a divider from the front door?

Center it in the middle of the room, 6 feet from the front door, facing the dining table.

add a sofa table and create a foyer. large rug, etc. they sky is the limit on imagination.

Dining room & living room is the answer and you need a comprehensive furnishing plan with well scaled furniture. This will absolutely solve your problem. Space is cute and has great light.

Thank you so much for all of your thoughts! To answer some of the questions:

Beyond this room we have our kitchen w/breakfast nook (where we eat,) attached to our living room. This is were we watch tv and enjoy our hillside views.

I never actually thought of getting rid of the dining room completely (we’ve eaten there twice in 5 years!) But it’s quite an intriguing idea.

While I do know the elliptical is absolutely awful here it does not fit well in our guest room or office. No basement and little storage in the house.

I dislike our current wine cabinet and have wanted to replace it. But potentially may be able to just live with out it.