The privacy issue is enhanced by the use of courtyards that were in many cases encourage in the Middle East and in countries that were influenced by Islam. The idea is that all rooms have an inward view to this private courtyard and it provides a high level of privacy for the occupants. A direct way to gain privacy was to build a wall however having rooms provide the "wall" instead allowed for more daylight in all the rooms in such a plan. This is an image I just grabbed to demonstrate the general idea.

Hi! I'm so glad I came across your floor plan, got pretty excited and ideas started flooding. Firstly, I'm uploading a draft of a floor plan I made as a rough copy (with a pencil and a paper), so kindly excuse the imperfections. (please refer to the picture I've posted along with this.) Secondly, as you mentioned, you would want to include the balcony in your seating area, I recommend you to break the wall and instead use French windows to allow the light within and it'll also feel very open. Then, about the kitchen, as you said you wouldn't want a large dining area, you could take that space for an open kitchen, where the counter also serves as the dining space from the outside. And since, the kitchen would be made towards the direction of the arrow pointed (refer to the pic) we get ample space to make a Pooja room. And to give an enclosed feel to the living room I chose and L shaped couch for it. I would suggest you to go for a mounted TV on a rotatable stand on the wall so that its accessible from anywhere across the room. Having done that, we are still left with some space (marked with a circle in the pic ) which could be used to put some more seats for the living room OR... (THIS IS MY FAV PART IN A HOUSE!) you could also use that space to mount a swing from the top. There were few more probabilities to do this house, but I genuinely found this one to be the best, coz I'm a huge fan of open spaces, and it's a good layout a lot of things could be done with it. All the best.

Hi Option 1 As suggested by Cornerstone above. This way the TV will be visible from dining too Option 2 Move TV to the corner of the entrance wall, next to the window, placed at 45 degree angle. The L shaped sofa can then go to the diagonally opposite corner. The wall can be a see through book shelf/crockery shelf. This is better as the visitors have some inviting empty space as soon as they walk in instead of a sofa. Option 3 TV in current position, but instead of the TV being mounted on wall, perhaps have an open shelf (like below)

Hi Deepasri, If you follow Vaastu, then I recommend that you have the Pooja room facing East. God’s idol should either face east or west. Expand your current pooja room to a study room that is accessible from your master bedroom or make it a store room where u keep ladder, travel bags,etc to be accessible from hall. And put the Pooja room next to it facing East in the hall.