am assuming this is a concrete structure, when shifting service toilet to utility area, and if there are apartments above, then running extra lengths of supply/drainage lines & introducing a structural sink slab (if this is concrete) under the new location can be charged extra.. it will be easier to divide the 3rd toilet. all services will be already available. only, do check on supply & drain pipes capacity as load is increased on the same pipes which were serving one toilet earlier..

You don't necessarily need only paintings as artwork. You can put some floating shelves near the dining space with some good crockery like plates or tea sets which can be used for occasions as well. On the wall in the living space you could keep either traditional or modern show pieces.

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interchange your dining and living as per plan