Your picture display looks lovely with your sofa and will look better if you bring it down because it's a bit too high above the sofa ( unless you plan to keep adding to the picture collection below from where your pictures are hung now) and in that case just keep in mind that multiple frames look best when arranged in a diamond, rectangular or square shape and spaced relatively tight, like 1-2 inches apart. A looser grouping can work for a more casual display.

Generally a sofa faces the TV. Not sure if the room is open at the end where you are standing or if there is a door or wall. You could even use the sofa as a room divider where you are standing and leave a walkway behind and on each side for traffic patterns. I would either mount the a TV on the wall it's on, or find a TV cabinet to enclose it that fits the space. Ballard Designs catalog has a shallow one that doesn't take up a lot of depth. I prefer to hide TVs in cabinets unless that is the only purpose for the space. Mounting them and having them in open shelving makes them dust magnets especially since the electrical charges attract dust. The draperies are pretty heavy and a lot of them. I think the room would look more updated and less claustrophobic with possibly shutters, that could also tie in with the ones hiding the opening on the adjacent wall. If using any fabric at all, I'd use only a valance but the draperies are too overpowering. The fabric on the valance could be repeated in throw pillows on the sofa or an ottoman used as a coffee table.

Wow, that was awesome Mark, thanks for that and everyone else. I thought about the desk facing the other way actually, to avoid feeling enclosed I do have really great views there so I thought about a small couch and maybe a bookshelf on the back, but having the dining table in front is probably not the best either.... complicated :( Here are a couple more pics, today was a beautiful day so I managed to get more of the views

Hey! Great space! The table is too small for the space, it would immediately help if you had head chairs on either end of the table. It would read larger. If you're interested in a new dining set, try a round dining table, seating at least 6 for size. You need something to define each space, a new furniture arrangement could help. I would try rotating the sectional so that its off of the window. Good Luck!