Need more pics. Turn the fan light on as well for taking pics.

Couple of questions.

What is the space beyond the fireplace? Is that part of the living room or is it the dining room? Do you use it as a dining room or something else?

Is the front door your main entry to the house, or do you use another door most of the time?

What is the distance between the front edge of the fireplace and the stair wall?

If you are willing to go the HD projector route, you could have a screen installed right in front of the fireplace. Float a sectional in front of the stair wall, facing the fireplace. Push a button, you have a TV screen. Push the button again, it rolls up to the ceiling and you have a fireplace.

You need lighting.

It appears that you need pieces that are strictly for storage. The tall piece with the glass doors should go. It corrals the clutter but does not hide it. Is there room on each side of the fireplace for matching, tall, doored cabinets?

The lamp with the paper shade serves no purpose and is out of scale. End tables with tall lamps are needed. Is that a coat tree by the sofa? Is there a coat closet? It seems that clothing is not hung up. Do you need an armoire for coats?

The problem with an open plan is that we see too much! Everything has to be clutter free because there is no stopping point for our eyes. I know how hard that is!

Hi -- I have my share of awkward spaces, so I completely understand. :) My objective in this situation would be to always have a clear and easy path to and from the door and stairway. Have you tried it with the sofa or loveseat positioned parallel to the stairs, but perhaps a little forward from the wall so that you could put a skinny table against the stair-wall behind it? If that works, you could try positioning a TV in the space where the large white case sits. Perhaps that case would then fit perfectly against the stair-wall behind the sofa? :O)

Your options are limited by the space and it's not much. At the very least I would switch the position of your sofa and loveseat. That will give you more space between the back of the sofa and the stair wall.