Post non-panoramic pictures of all 4 walls, here as a comment. Include the rooms dimensions.

Is this the main living room or is a family room/den?

Right now, it looks like you need a better furniture arrangement. Everything is hugging the walls.

You need a rug to start to amke it all come together

This is the family room. There are two entry ways to the room ( no way to rearrange other than to swap the couch and the television.)  

This layout would work better for your living room IMO. This will allow the sofa to face the TV but also include lounge seating for additional people in front of the window.

The space is only 10*11. I like the idea moving the television and the couch on the other wall - no room and no need for additional seating. What would you suggest near the windows if I am not placing more chairs in the room?

I'd focus on better lighting first. Next, do you intend to have a rug in here? If so, purchase that, then wall decor, and last window treatments.

Do you need window treatments to block light, for privacy or just as decor?

Love the idea of the rug first. The curtains are for deco.

I like Beverley's layout, with or without the chairs. You could try it out and take new pictures for us to see. A rug and drapes would be nice too. I would get drapes that open and close as it would block the light more when watching tv.