IMO do not do stools you have a DR right there so use that for seating when you are cooking put a sofa very close to that counter and then the space will be fine . In fact if you are planning any kind of kitcehn redo down the road I would do the cabinets there with no stool over hang at all that would give you another 12" in the LR

You can use the spaces as designated or switch them. If you keep the corner for the living area, there is only one location for the TV and that is on the face of the cabinet peninsula.

In small spaces, sometimes you have to be very creative in placing a Tv.

@BeverlyFLADeziner I love this layout, although Im not sure the couch/room ratio is accurate as it would have to be a loveseat (4'x2') to match the scale you've shown in the first pic. Sadly the TV outlets are positioned on the long wall with the windows.

There is likely a outlet under the sink that can supply electricity to the face of the peninsula

Beverly gave you the best idea. There are many wireless tv setup/options. You don’t have to be a prisoner to where they threw the outlets. A sofa should really be on that long wall in this space, not the tv - from a Feng Shui perspective, or from any perspective. You could put a table and barstools somewhere else in the space.