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.

We are planning to use a dark taupe on one side of the lounge (left wall as seen in plan), and the same dark taupe in each of the bedrooms (1 side only, wall behind bed). Is this a good idea or would u prefer using a diff colour for bedrooms? Thanks

Well, for lack of a better idea, since you find it a drafty little space. I'm assuming the draft comes in on the right? Most of the necessities in the area are located of the left side; i.e. vent, thermostat, light switch etc. What I would do I think is caulk up the drafty spots, maybe even add sized poster board wrapped in batting I covered in a gorgeous fuscia with diagonal grosgrain ribbons every which way covered with a heavy velvet to be attached to the area above & below the window. (Of course remove the drapes that are hanging in there). This for the purpose of using it as a pin-it board for notes. Attach a table height board covered in felt to carry across the full width of the little room. Leaving just enough space for a comfortable little antique desk chair. Paint the back wall a bright cobalt blue, paint the ceiling a silvery pearlescent white. Find a way to attach a clip-on task lamp. And stretch a heavy duty enough wire across the top of the opening and complete it with a heavy doubled velvet drape with a drooping valance. Place a swag with fringe & jewels on it to be closed when not in use. Voila intrigue is yours!

We are moving into this house and I am trying to work out the best way to may the long, lounge more homely. Where to put the TV and the couch/couches/armchair etc. This is a semi-formal lounge area where you are in the dining room and kitchen before you come into this lounge. We are going to paint the whole room in Okarito to get rid of the dark brown fireplace area and try and 'widen the room'. This long couch and other furniture in the photo was used by the agency for staged home viewings.