This is a really awkward space! What about trying to build a unit into the corner which seems to be dead space. This could house the television and other bits like dvr,amp etc. The unit could then extend out towards the door in length and in height either up to the start of the window or up to the start of the blinds. I would suggest drawers for toy storage and books above. In this way you leave the windows clear for light plus it looks like you have a pull down screen so the tv would be out of the way of that. This arrangement would also hide all those wires and cables! Ikea have some good examples of storage which you could adapt or copy, such as Besta which illustrates the extended toy storage. http://www.ikea.com/gb/en/catalog/products/S39927155/

It depends on the style of the room as well. I don't like to see cables. I have the Cineline stand in the family room,. It swivels and I can store CDs, DVDs and the cables, behind the stand. Here is a photo of the unit in a catalog.

Try the TV where the sofa is now and float the sofa perpendicular to the fireplace where you currently have the big chair. Perhaps the big chair can then go where the TV was for a quiet spot for one. Or even better, pull the loveseat off the wall and put the big chair to its left flanking the fireplace.

We have an alcove for the tv in the family room. How can I incorporate this unit? The floor is dark oak and the walls are white.