One possibility would be to swap the living room and the dining room. Since the current living room is larger than the current dining room you could still keep some comfortable seating (couch and upholstered chairs?) against the front wall for a keeping room/dining concept. Then your new dining areas (kitchen and dining room) and living areas (living and drawing room) would have good flow between them, which would work well both for family and entertaining. You could also add some builtin bookshelves in the drawing room or new living room to create a library area to add another fun element to the living areas. These bookshelves could be against the long walls in the drawing room, around the window with a window seat in the living room (former dining room), or built to create some separation in the open area between the drawing room and living room/stair area. Your plan seems to show some sort of builtin there, but I'm not sure what it is.

This Cabinet is $155 at Ikea. You could take the 4 items you had hung, and put them in a "shadow box", or individual deep frames to tie then together, to create I piece that looks more substantial on the wall, Then add a little ledge for photos, and you would even have room on the cabinet for the cool bottles that were on the floor, and that cool chest could definitely find a home as an end table, or entry table. You could also add a larger plant in a really nice pot in turquoise. The cut and paste renditions arent always completely accurate in scale.

This is a great space to work with. Since you have a good length, you can break the terrace into rooms.. with yew to divide the areas, or tall plants with shallow roots. Grow grass in curves and a pathway to lead visitors through the various rooms. Couple of ideas for garden 'rooms': Bamboo with golden stem or black stem as background, with charpai and 'moda' seating with cushions. A light under the foot of the bamboo, looking up will be alluring. Put up a trellis with fragrant climbers like jasmine and seating underneath on a part of the terrace which gets shade in the evening so you and your friends and family can relax. A dry garden with hardy plants like tall grass and Palm tree, pebbles on the ground to create the look. Plant a small flowering tree in one 'room' Add evocative lighting to create the mood in the evenings. As you can see there are many possibilities. Please ensure the ground is well protected from water seepage etc before you start planting. Also ensure the height of the periphery wall is taller for it to be safe for children and adults. Bear in mind the size of the plant, roots, sun and water needs before you choose your plants. Enjoy the creation..!

For the living room, the focus should be the balcony area. So flipping the couch to face the wall and not the dining table will help. Kind of like this pic. Even if you already have the sectional that is in the diagram, you should be able to flip it. In fact a sectional would probably work better than the couch in this pic. I also really don't like the style of this pic, but it showed what I meant, For the girls' room: No matter which bedroom you choose, you should maximize floor space so that they have the biggest play space possible in their room (as they get older you can add desks for school work and such). To get this space, I would give them bunk beds. This configuration gives them an open feel and more storage, essential for girls. You posted two different kitchen designs. This makes it hard to give you advice. I agree with other posts that your sink should be away from the wall. This allows you to have stuff to the left of you (drying dishes in my house), while you wash vegetables on the right of the sink. You need the same space on both sides of the stove, also. At least 24 inches on both sides is good. 36 is better, though. The first design has a nice little countertop space that adds a place for your daughters a space to sit a watch/ talk to you while you're in the kitchen. When they added this to the first design, you lost cabinets on the other wall. This is bad, as the space is already storage limited. Try making the rounded countertop bump out into the living space more. If you play with the shape, you could make it work without losing the cabinets on the other side. It doesn't have to be rectangular or a perfect circle. You can see how this one isn't confined to the floor plan of the kitchen. I think this is what you would need to do to make it the most functional.