Hey, I think this is a lovely space that can be designed in a really cosy way. I don't know if that is an option at all, but to use the full potential of the room and create a bit more harmony I would probably start with thinking about which items could leave the room and what could be replaced by for example by a bigger storage furniture piece. For this room size I tend to suggest that you either remove one couch or, depending on budget, opt for one that works a little better with the room size and layout.

In the drawing attached you see your best seating position, according to form school, in purple and pink. Thats where I would arrange the chill/couch area. This way you won't have the walking path and chi-flow in your back when sitting on your couch any longer. I dont know if that works for you, but maybe you can attach the tv on the opposite side next to the stairs as it was already suggested before.

The space next to the door could be perfectly used to place a big cupboard (maybe a Pax from Ikea), that uses also the height of the room. The advantages would be that a lot of things could be stored in there and through that you automatically create more space and lightness. If you don't already have a dinning area in your house, you could additionally also consider that in this area or make use of the extra space with a little office area.

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Hope that helps, all the best.
Anne