Hi there, I desperately need help with my living/dining space. It is a small space, 14x18ft approx with cathedral ceilings half the space and lower ceilings the remaining half. It has huge windows and a small alcove to one side. One of the longer sides opens into the kitchen (open floor plan, townhouse like house)

I'm looking for a comfy, inviting, pottery-barnish look while at the same time not making the space look too small.

Here is what we have so far:

1) Persian rug from a friend. Very busy. Beautiful in a larger home, would love to incorporate it into our decor but I'm not sure it'll work in the smaller space. Should I make it work or put in storage?

2. Brown leather couches. Love hate relationship. Uber comfty, easy to maintain and clean with kids. Would love lighter colored couches but I have kids.....if they don't work at all, I can get rid of them, they are in photo 4
   
3. 50in flat panel TV
   
   What I would like
   
   1) ideas for layout...where the couches should be etc
   
   2) Ideas for stuff to add....curtains, throws, cushions etc to pull the look together...comfortable, inviting but not crowded/busy
   
4. coffee table
   
   4) dining table...which one? I would love a 6 seater because we entertain a lot, but maybe I should stick to a 4 seater?
   
   We just moved in and have no furniture so stuff is all over the floor....pls excuse the mess
   
   Photo 1 is the longer dimension of the room. There is the large window and the door to the backyard there
   
   Photo 2 has the shorter dimension and shows the couches. Note also the alcove to the right of the photo next to the window. This is the part of the living room that has the lower beam roof
   
   Photo 3 is the other shorter wall
   
   These are 3 walls, the 4th side is half open to the kitchen, you can kinda see the opening to the right of photo 3 where the vacuum cleaner is
   
   Photo 4 is the persian rug 12x10 ft
   
   Thank you so much for your input!!!!