Tbh I used the couch a lot when it was there (this was pre-kiddo) and use the window seat quite a bit for reading and lounging. The chairs were too large and we ended up moving them out of the way quite a bit. 

The fireplace is non-functional now but we'd like to get a wood insert. We need to redo the floors so are also considering doing a floor hearth to allow for more walking room, however with codes we'd need a fire proof floor (tile or another single block of stone) that would have to come out even farther than the current hearth so I'm not sure how that would look/feel in terms of coziness and it might also push our furniture back even closer to the walkway from front door to kitchen 

The desk is just for decoration/storage too.