Love the armless sofa-bench! Try using it in the center as a "cross-linking" piece between the sofa and chairs. That way people can sit on both sides of it, conversing with the sofa people and the chair people. Put the chairs where it is and use the side table from the left of the pic, or the one with flowers, between them. You'll need one huge rug to anchor the space or two smaller, and very similar ones, to put on either side of the blue sofa-bench. The other two side tables are too tall and too short for your seating pieces, so ditch them. Use your coffee table between the sofa and armless sofa (18" away from each of them.) Here's a chart for judging table and lamp heights as you'll need to work on that for balance. Please try this arrangement, and post by commenting and using the Attach Images button to add pix of the update. We'll tweak it on out from there.

OK... but the wire wont be lower as it is fixed now. The wire in the pics below is the wall facing each other. They were leveled on equal height but the beam on one wall makes it seem a little above. But i think you guys are absolutely right that up and down lights wont look good there. I think you are right about down lights lessismoore. Would it look good if i go with two different lights on opposite walls??? it would look odd right.

So many grays turn blue. after much trial and error for bdrm, bath and water closet , i'm happy with Benjamin Moore Horizon and Behr ultra in Burnished Clay. Neither look great on the card but they dry to a soft neutral gray. worth getting samples to try.

you are thinking about the space right now. it looks odd, no doubt. 1) when you fill in with the furniture, just make sure the three steps are hidden. 2) consider three potted plants of different height, so the rectangle is complete. 3) glass bowl with Siamese fighting fish for each step 4) figurines of different heights 5) 2inch square wooden bar on each step up to the top of the rectangle. and complete the entire rectangle if you want with a smaller rectangle open in the center my suggestion is, there is a reason why this space ended up like this. it will look great once you put something there. things like these are what make your house unique.