I would definitely turn the sofa around to face the TV, pulling the sofa away from the wall by about 30". Place the back of the sofa so that there is walking space behind it. You could use the end table and lamp at the end of the sofa in that 30" space we left. Use an extension cord to place the floor lamp at the other end of the sofa

.I don't think you'll have space in your family room for a dining table and I would not really recommend it with carpeting on the floor. But you will have space for a desk area, tho with the TV close by, it may be a noisy area in which to work.

I would recommend moving the sofa under the window, re-doing the window treatment with a great pole/finial combo and if possible getting a larger wall unit for the entertainment center. The wall to the right of the entry would be great with a long console table with a lamp and some art or a mirror above to pull it into the living space. Also some big chairs or another sofa or loveseat would look great or if you ned to use the room for office the far wall could hold a desk and bookshelf combo.

Old post.

Agree with Carolyn for sofa placement. As with most families with small children your problem is toys...If you have the budget a wall unit around the tv could provide a place to store toys out of sight when not in use