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/

I agree with Diane's ideas! Grey is a nice color. The only thought I had on having a corner sink cabinet, you may not be happy with it in the end. You have a little corner, and the sink may be too small for you in the end along with not having any storage space. If you can't find any curtains that you love, try a cheap roller blind for now. It will give you a visual look and an idea if you want to stay with a curtain or going a bit modern with a patterned blind or even a roman type shade. It could turn the cozy look into a clean modern look. Framed mirrors are expensive. Call a glass company in your area and have them give you a price on mirrors. It might be quite nice to take the mirror down, and replace the wall there with a complete wall mirror to fit, stopping the mirror at the vanity, and continuing the mirror across the vanity between the sink and window. It will make your bathroom feel much bigger, even though you wont be able to see in the mirror over the sink. Close up the vanity doors with new door. Use props first (white poster to cover up the doors) etc. before you buy anything! Stick on tiles are a great idea! They clean nicely and look great. Although I wouldn't go with the wood look. Your bathtub tiles are old fashioned, go with a stick on floor tile that is easy to look at, try to get samples first. Remember Gray is a sleek clean modern color. It is not a cozy country color. If you don't like the grey in the end, maybe a real pale blue or butter yellow (that would be more of the cozy cottage look).

I was thinking maybe a pergola so that you can still enjoy the sun when necessary but have a small area where you can just relax with your family. What were you thinking?

You could install racking for both sides of the room, toys & clothes that aren't being used can go into large plastic containers with lids. The two bikes could be hung from the wall or ceiling. And yes, anything that doesn't need to be there, move it on. There are so many hooks and storage options available that it would be very easy to sort this out and by getting a lot of it off the floor.