What is it about the pictured room that you like? I ask because the things you mention wanting are not in that room

I'd go with either another neutral (gray, cream, etc) or a rustic look that wouldn't compete with the floor but would harmonize with it... (You don't show your TV, but be sure to get something significantly wider, for balance, if possible.)

This is the drawing of what our formal living room will look like. I'm clueless as to how to arrange furniture in a room shaped like this. I'd like there to be a cohesive conversation cluster with adequate space to seat 7 and also place a centre coffee table & a side table as well. Please help!

Your setting is good but could be better.the centre table is a misfit.you can use 2 level rectangular table either white poly paint one level and the other level glass or black paint or poly paint.keep the length of the table after leaving approx 16 to 18"on either side.the width can be20-22 " and ht 16".the cushions can be change to black and white design,with a dash of red.a nice rug with grey,black and white geometric design will enhance the effect.brown does not go well with white.i hope this should solve your problem.once you make this change.you eye will pick up the other flaws.