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/

Get the professional sander guys in to repair the living areas and kitchen but don't go too dark with the stain as it will kill the lovely grain in the matai. I'm thinking a couple of tones richer than the timber knots showing in your photo, definitely no yellow tone at all. In NZ stepping on to carpet especially in a kiwi winter is so much nicer than a cold floor board shock!!! A nice area rug for the lounge and you're done.

As you rethink adding a fixed window, consider either a fixed window that is the long horizontal kind over the shower/tub surround and/or an octagon one with stained glass for the dressing room. https://www.google.com/search?q=images+for++octagon+windows&biw=1366&bih=673&tbm=isch&tbo=u&source=univ&sa=X&ved=0CCIQsARqFQoTCOaJ69fb28gCFcYVPgodogsLDw You could add a couple of pairs of shutters to create a pair of faux windows that look as if the shutters are closed. If you don't want a window that opens on that wall, you might consider having a fixed window and shutters that are louvered to let in some light while protecting your privacy. You might also consider a faux gable with a faux window, perhaps functional as part of the venting system for the bath.

Thanks very much for all your feedback. Just to answer a few queries - the deck is directly outside the main room so the new doors open out onto it. The doors won't be French - they're just the only doors that the 3D planner I'm using had, they'll actually be large stacking doors. I've had another idea too which would be a lot more expensive but offers a completely different approach. This is quite rushed so doesn't show accurate layout of kitchen or anything like that, basically just provides an idea. Thoughts!?