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.

The taupe countertops are nice. Have you seen all the new choices of backsplash tiles that are available currently? There are so many beautiful ones, there isn't a need to settle on white subway tiles. Venture out to the big box stores or flooring showrooms and take a look... There are tile caps of all sizes to finish off the ends. A nice one is called a tile liner, and it's about 1/2"-wide. There's also metal strips that can be laid in to finish the tile, it looks very nice. They are called: Schluter Systems 0.375-in W x 98.5-in L Aluminum Commercial/Residential Tile Edge Trim and can be found at Lowe's. They come in different colors.

Wowzers! What a transformation.

Love the blue carpet. It's such a nice colour and you rarely see blue carpet!