Privacy could be obtained with a screen, placement of potted plants, an open bookcase, but I like your idea for a curved track with a curtain as one option for visual privacy. I would rotate the dining table 90 degrees and move it towards the balcony. I would remove those two chairs/tables because the layout of a single chair that far apart from another chair does not work. You may need to move the seating away from the main entrance because it looks like you walk in and you're on top of a loveseat. In such a tight space with so many doors that open in to the main living/dining - my advice is to keep it simple. Scale the furniture properly and have pieces that are multi-functional. Example- an ottoman that can serve as seating. A bench at the dining table to seat 3 on each side. I would also place two smaller loveseats facing each other in front of the fireplace. This will give you an "entry area" (along the back side of the kitchen wall) and help to define the living from dining rooms. Even if you don't have a formal entry, try to create a bit of space to welcome people.

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.

Leather sofas can really dominate the room and can give an overall cold feeling. I would add some earthy elements, like a wood coffee table with glass or metal. Go to Restoration Hardware's website and look at their sofa room scenes. And I'm sorry I think the art is too harsh for the room. That's all your eye goes to in the room. too overpowering. I would look for something softer or maybe a cool mirror and I would add color to the room with pillows and some colorful lamps. I also think woven blinds would look great. They add warmth and give a finished look. The color of your window treatments should contrast your wall color a bit, not match it or else it starts to look generic and blah.. You have warm walls, warm floors and the woven blinds, like Hunter Douglas brand would pull it all together for you.

Perhaps a large round table might mean a rug is not at all necessary. It could be a metal tray table, or carved wood like Rebecca Mitchell Interiors illustrates. Ideas also to consider, using multiple tables can be found at http://www.houzz.com/multiple-coffee-tables. I also agree with comments above that some color is needed on the walls. You could then hang round mirrors, or an unusual curved shape like RMI shows above.