I would put the shoe rack somewhere near the front door instead of in the far corner of your living room. I would put the long part of the sectional centered on the solid wall with the return on the right side separating living from dining if possible. If not possible, I would center it on the window with return facing fireplace. I agree about not having it close the room off. It seems uninviting and makes the room appear smaller than it is. I would center the tv on the wall opposite longest part of sectional, wherever you decide to position it. I agree about moving the fireplace. It's what's causing the issues in here with furniture placement and is indeed underwhelming because everything is larger than it. A fp should be the focal point and should be in proper scale with the furniture pieces and tv. Rethink your wall hangings, they seem too random. Get rid of the fake plant. A few tweaks and this could be really nice!

Also, just noticed you had a couple past postings of this room, I much prefer your September posting arrangement with the couch against the window and tv on the other wall...much better vibe... Just would have gotten rid of the curtains and blinds, and would love to see a canvas roman shade...you can see some on the pottery barn or restoration hardware site to get an idea of what they look like. Fireplace still underwhelming for the room though, and would move it elsewhere...

I think it is a matter of playing with the furniture arrangement...I'm not a fan of closing off a space with the couch in the position it is currently. The fireplace is real or fake? Is it moveable? Is your chaise on the couch able to move to the other side of the couch? I think the fireplace is underwhelming for the room since the tv has more presence and purpose than the fireplace in this case...and if it is fake, I would think about moving it to a different room...maybe your master bedroom? Someplace cosy, romantic, etc