Do you want to use this same furniture? Do you have a drawing with measurments of the space and your furniture? How do you watch TV now with it on the short wall but your sofa facing towards the kitchen wall?

There isn't a lot you can do, but first thing I would work on is the t v wall to make that end of the room look more important. No way you can have guests watch t v, but you could use the chaise end for yourself.

Using the rug you have, turned horizontally to the wall, get a larger piece for under the t v, add LED battery powered sconces...this idea:

Take the inspiration from this blog. You can find the throw pillows on etsy.com

https://www.settingforfour.com/living-room-makeover-new-tv-stand-wall-art-rug-pillows/

Amazon has great lap trays you could use for guests. Don't consider a 5 course meal.

Totally new furniture, but would love not to have to redo the kitchen too much. I'm just moving in, so not watching TV there yet, but as it is now seems completely impractical, just not sure if reconstruction would help or I should survive as it is.

It's 247 inches long, 165 - wide.

Do you want or need at TV in this space? Do you watch TV or could you watch it in the bedroom? If you don't need a TV in this space you'd have a lot more options. Though totally understandable if you want a TV in here.

I think I'd need to keep TV, don't care about dining table though at all. I was thinking about TV stand maybe so it's not so dependent to be hanging on the walls.