This arrangement works much better, but some adjustments are needed to make it work. First, the fireplace grouping needs to be tightened. It crowds the dining area and you need a passageway behind the couch. Turn the rug lengthwise, parallel to the fireplace. Pull the large couch about 2 1/2 feet closer to the fireplace, and place the two chairs and loveseat on the ends of the rug, and pull them closer together. This will give you a more intimate conversation area, and not impose on the other areas of the room. Remove that floor lamp from behind the couch. If you need the light in that area, put it by the fireplace. Also, the stereo system on the mantel needs to find another home. Maybe it can go IN the fireplace instead. At the other end of the room, I think the arrangement would look better if the seating were rotated 90 degrees. Keep the rug and coffee table in its current configuration, place the sofa either facing the window or with its back to the window, and put the two chairs opposite it. Finally, the dining area. Now that you've moved the big leather chairs, you should have enough room. Your rug is too small. It should be big enough to give you at least a 2 ft. border all the way around when the chairs are pushed in. And it's a really beautiful table; please uncover it. I can't see what kind of lighting that area has. It really needs a pendant or chandelier hanging directly over the table.

Have you ever thought about floating shelves? I think pairing a few floating shelves together would look great and would free up space in your living room. I really like the Eugene floating shelf from Bryght and I think it would compliment your existing pieces. http://www.bryght.com/product/160/eugene-cocoa-shelf

I would say definitely teak for outdoors in the tropical climate. Wicker would be fine if it's in a covered area. Here is an article about different woods for tropical climates. "The price of sustainably grown tropical outdoor furniture is becoming more and more affordable as the industry utilizes other varieties of sustainably grown tropical hardwoods, such as the following: Eucalyptus is a sustainably harvested plantation grown hardwood that possesses a smooth finish, lovely grain and a rich honey-red color that weathers beautifully due to the high oil content of its wood, and it smells good to boot. If allowed to weather naturally, the wood will take on a pleasing soft gray patina. It can be stained to retain the rich golden red color of the wood, however most people prefer the soft gray patina. Eucalyptus is less expensive and much easier to maintain than some of the other woods used for outdoor furniture. Balau is also one of the hardest of all tropical hardwoods. It is much more dense than teak and is in abundant supply. Like eucalyptus, it is more affordable than teak and will also withstand years and years of exposure to the elements. You will want to treat the wood occasionally with good wood oil if you wish to preserve the natural color, however this is a very low maintenance outdoor wood. Teak for good reason has become one of the most sought after of all the tropical hardwoods. Although it was at one time the preferred hardwood, along with mahogany, for ship building and decking, it is now grown on teak plantations due to its scarcity. The demand for teak is still high among those who are able to make the investment in furniture made from this beautiful top quality wood. Teak outdoor furniture is one of the more expensive options for outdoor furniture." http://www.thehouseandhomemagazine.com/Articles/Vol1No8/OutdoorFurniture/tabid/228/Default.aspx

The sheer curtains looks good. The thick curtains can be changed into a plain one (neutral grey maybe) instead of a patterned one as it looks crowded. The tv can be wall mounted. Remove the decorative items kept on the tv unit. Reposition the black loveseat to near the sofa at an angled position. The cushions on the sofa needs some colors. Maybe you can match the colour of the cushions/throws to a painting . Painting can be hung on the wall above the sofa.