The ceiling is beautiful!

Thanks for the observation. there are no doors into the sunken area, just openings. Here is rough floor plan. The window is about 7 feet tall by 15 feet.

Would you like a tv to go in there too?

No, I dont need on there, but I wouldn't mind having one if it could be hidden.

Is the foyer doorway the only passage to the foyer or could closing up be an option? And what type of flooring is there?

I'd keep it airy and simple. Not knowing your floor, I used wooden planks painted a creamy white. A long window seat in the same wood color as the ceiling, but with a white top, so it will reflect lots of light and blend in with the rest of the woodwork. Plenty of storage underneath. A symmetric layout with two 3-seater sofa's and two ottomans. Doors on the cabinet next to the fireplace, but I assume there are already are (freshly painted in your picture)? If you want a conceiled tv, imagine the artwork on a slider or hinged with a tv behind it. Nothing fancy, pure materials, natural soothing feel, let the stone and wood ceiling make their statement. I hope you like my ideas, tell me your thoughts on them.

Closing up the foyer is not an option. The house faces a lake, so as you come in the front door, you see out the big window in the living room. we are putting down all new flooring throughout the first floor. I attached a picture. Planks are 5" wide. Thanks!

Thanks for the design! I never would have thought about a window seat along that wall! I also like the idea of the hidden tv. My only concern is that I don't know if that is enough furniture in a room that size?

Here's a simple rough layout for you with a long bench under the window. Consider a swivel mount for the TV on the half wall. The set can turn to the dining room or living room.

Yes, it will be enough furniture. Around the seating there's about 3ft to walk around the 'seating island'. You could use a huge rug underneath too. Some pillows and maybe a few tall plants on the long window seat will 'dress up' the room. Add some (faux?) curtains and the room will be minimalistic yet cozy.

Plus, I think with a fireplace that size, it's better to have some large items (furniture) than a bunch of smaller ones.
If you want some more visual stimulation, pick a patterned rug, a nice floorlamp, some more picture frames or artwork and some pretty bench pillows.

Thanks for all the ideas!! Both plans are very helpful. I really appreciate the input! I think I was trying to get too many pieces of furniture in the room. The swivel mount tv is so cool.