You could also bring in some texture with bamboo sticks or decorative branches and help balance a bit the height of your room with small scale furniture. Spray paint them if you find the perfect size and shape but they aren't the color that you need. Ikea carries white decorative stalks for a very good price. the ones in the 1st picture hold well with small kids around and you don't need a vase for them. there are washi paper or crinkly paper floor lamps with a soft beautifully diffused glow For a budget friendly version check ikea or target http://www.ikea.com/us/en/catalog/products/80028552/

@mhatres, Consider yourself lucky today. I had a student designer who wanted to see how a design can be made with a little information. I took your floorplan for an example and made these designs for you. Hope you liked them!

I think your inclination toward rustic and distressed pieces is the right way to go. Consider a movable coffee table - I see 2 recliners that may necessitate some table shifting?- an area rug large enough to incorporate all the seating, rather than just a hearth rug, and enclosed storage for your electronics. If you can post shots of the room, other Houzers may have some more ideas.

I feel partitions are not needed. You already have too much for the space. Adding a partition will shrink the space further. The simplistic solution, you do not wish to discard any furniture would be to paint all the walls in lighter pastles. And use some wall painting frames to highlight certain walls.