I'm tackling the first room in our new house, the living room and need ideas of what to do with the rest of this space. We just bought the sectional and chair and we will be doing a white pseudo built-in entertainment center with the tv (tv will be hung with cabinets around it), so we're not worried about that piece. I know the curtains are a bit too short (will fix that, so no need to comment there). My main concern is the space behind the sectional --

We have a three-sided fireplace that separates the dining area and a large window on the back wall and another window on the side wall. My main thought is to get a much bigger bookcase where the small bookcase is now and two conversation chairs surrounding the window near the fireplace, or perhaps a bench under the window near the fireplace. We will need to have some sort of lighting back there since that outlet is what is attached to the light switch (no overhead in this room).

There's really not enough space to do a whole separate area and while we could pull the sofa back a little, I don't think it would work to pull it all the way back.

What ideas do you have?