Planning to have this implemented on the wall:

Your ideas sounds great and fits well with the style of the space.

The wall units are great, which wall will they be put on? The one at a slight angle?

Its quite an awkward space with the front door and entryway where it is.

I like your idea for the wall components, but what wall are you putting it on? The only wall long enough looks to be the one that spans the living and dining areas, and it appears that would severely cramp a dining table.

Consider doing your wall system in an L-configuration in that corner where the chair is now, and your seating in another L-configuration opposite it.

@ambersarris the wall units would be placed in the spot where there is a TV currently. It would stretch roughly half of that whole wall, as the other half would be left for the dining area... Something like this would be the plan:

what about adding a stylish wall clock?

@groveraxle as I stated in the other comment, the wall unit would only encompass half the wall that stretches from the living area to the dining area... You can see the 3d perspective above what it would look like... Here are other views of the area (excuse the quality of the pictures)

OK, looks like there's enough space. In that case, if possible, I would arrange seating to face the wall unit and the window with enough space to walk behind it from the entry. I'd leave that fabulous window bare.

@groveraxle Would you recommend a console table behind the sofa in that kind of arrangement? Not that I'm a big feng shui guy, but it's been said that the back of the sofa facing the entrance isn't a good idea, unless you add some sort of console table behind it... Does anyone agree?

I personally have no problem with sofa backs and in this case, because the room is small, I'd advise minimal furniture. I'd try a sofa facing the window, and two chairs with end table between them facing the wall unit. I think that would be a more pleasing and open look as you enter the room.