The house looks very livable. I love that you have concentrated on creating one nice bath with separate walk in shower and a windowed tub! Since you have already thought of it, I'm going to assume that the attic is for future expansion and cannot be adapted for use as the current "away room." We are also in the process of designing a small house, and we've designated our study as the "away room." Ours will open off the dining room. If you switched the locations of the Study and Bed 1 on the same side, you could put french doors or an extra wide door with etched or decorative glass from the hallway into the right hand corner of the study. This would give you a really long diagonal view through the lounge and out the french doors, and from the lounge through the study to the window at the far end... The study window should be increased in width to match the neighboring window in Bed 1, and it then becomes ripe for a small window seat, either a clip on bay bumping out, or a "built-in" bay using narrow built ins on either side. Or both: build "in" for now, putting file cabinet drawers under the window seat, and angled corner units in for storage, and add the bump out bay later when you know whether your offspring would prefer a really cute desk, or a window seat, or a bed nook. You would, alas, lose the door from Bed 1 into the bath.... but honestly, there are lot of doors into that bathroom already, and that one has substantial collision potential. It might be best to make the single access point that door from the laundry. Either a glass panel set high in the bath room doors or a transome would make it easy to tell when someone is in the loo. Other ideas would be to split the nook under the stairs, so that half the depth opens to the lounge, and the other half to Bed2... with the wall thickness, you probably get close to 600mm or 2' on each side. Add a deep bookcase or other built in, and you're easily at a depth that makes both spaces very tucked in. Lastly, if funds allow a shallow bay window over the kitchen sink would visually expand the kitchen, particularly if you could arrange it so that the counter runs right into the bay.

What a fun space! Love the pillows...I agree with above, lower all the frames, but not so low little ones can reach. The art should fall at eye level about 5'4" for walls and for behind the sofa not more than 12" above it. Then keep the width about 5" inside the sofa length on each side. Your frames are small so you need the close together for impact. I would start with some pretty curtains for the door and large window and then a simple Roman shade for the small window- since your girls play there you don't want anything they will grab hold of. http://www.houzz.com/ideabooks/query/how-to-hang-a-photo-gallery

What did you end up doing?

Beauty and practicality; Mmmmmm ..... When it is something that you love .... real wooden floors. Now vinyl just gets dirty , Ply looses it functionality, real wood however gains a patina. You want that. People pay thousands of dollars for that. Go with the most genuine example that you can afford of what you love. Factor in your budget and add to it, an area at a time and be pleased that your life gives character to it every day. By analogy; A mahogany french polished table will just give you a nervous break down every time someone doesn't use a coaster ... a hardwood table can be replenished over and over with hard wearing protective surface .... which you can repair. If you love it, if it adds genuine warmth and character, you won't mind maintenance. You won't be saying ...." look at this floor , isn't it amazing? It looks just like the real thing?"