Hi, am no design expert and we could have very different tastes in decor but there were a few things that stood out for me and you may want to try?
1) definitely not putting the two armchairs together - the mismatch is more obvious.
2) since the fireplace seems to be the focal point in this space, I wouldnt want to put the cabinetry right opposite that...and try perhaps diagonally spacing it at the corner left off the fireplace?
3) did you try placing the sofa within a cosy distance from the fireplace, facing it too? I wouldn't stick the sofa backed up on the wall.
4) perhaps try positioning either of the armchairs on either side of the fireplace...
5) add a coffee table in the center of all the seatings..
6) add an area rug to accentuate the seating space..

I am more of a visual person and work well just applying ideas thru trial and error. Let me know if any of the above works or any other ideas spark out thru the adjusting..

http://houzz.com/photos/4550182

I love this idea of centre piece between the sofa

It will always be difficult to arrange a 3-seater and a 2-seater in any space and create a comfortable conversation area. Much easier to use a 3-seater couch and a pair of armchairs (matching strongly preferred).

I love your color choice of neutrals. How about moving the breakfront to the wall your larger sofa is on. Move the wood arm chair to the left of the fireplace. move the the larger sofa to the right of the FP so it now faces the breakfront as a room divider then butt the sectional piece up to the sofa so it faces the FP. Add an ottoman to the center of couch seating and the room will be cozy and welcoming.

Hello Stephanie,

I think you might not be able to use both sofa and love seat in this room. Try arranging the 3 seat sofa parallel to the fireplace and you might also fit a single chair on the upper left side of the living room (left side if you are facing fireplace).