I would use a bookcase unit with closed doors on the lower half and not too high. Wide and low maybe. Closed lower cabinets are great for toys, games and will not clutter. Open shelves tend to get cluttered after a while. When displaying books, use in stacks standing and lying down. Open space between groupings, not all lined up in rows. Add some decor items sprinkled among the books to give the eye a visual break. I would choose a horizontal art piece for the chair wall. Add some art on the long TV wall leaving a lot of bare wall between the TV . and the artwork between the corners of the chair wall and the window wall.

Ozbern: we had a similar dilemma, lovely backyard and then they started tearing down bungalows and building four story townhouses all around us. I built a single depth pergola along the back property line, the beauty of this is not only the privacy, but it brings the scale of the yard down to make it feel more intimate when we are outside. We also added a 10' x 10' (little over three meters) pergola right up against the house where we had a wall of windows. Will try to find that photo too. We have coral vine now growing in it. Dies in winter, comes back in spring. You can always do more contemporary details if this is too casual.

I am planning to add scatter cushions and think if I do a pair of larger ones for each end so they go over the arms to creat height at each end, and a couple of smaller ones, I want to bring some colour in too. I do like the idea of a larger side light at either end to, Switching the sofas is going to be my final fix if all else fails!!

There is nothing worse than ceiling-mounted lights--harsh shadows, flat lighting. They are strictly for utility. I would put a large-ish, shallow cylindrical shade on them and put nothing more than a 15-watt bulb in them. Use them strictly for lighting your way as you walk through the room. I agree with Vincent; the chair in the corner doesn't fit at all, nor does the one under the A/C unit (put that one with its mate behind the love seat). And the curtains look smooshed. I think the problem with the bookcases is that they are uninteresting. Did you buy books-by-the-yard? What are all those identical books? They are visually uninteresting. I'd get rid of some of them and get some colorful ceramics/glass/photos. The room is absolutely overwhelmed with furniture. It needs one less love seat. Do you really need all of them? Pushing them against the walls/curtains so tightly just visually emphasizes the fact that there is too much furniture. I don't think a mirror above the fireplace will work. When people are sitting down (which is most of the time), all they will see is a reflection of the ceiling--the plain, white ceiling. Get some real art in there with some color.