Actually, there is a designer who has designed a sofa/table piece. You can see it here - http://kononenkoid.com/julia-kononenko-projects/convertible-sofa. That may help you visualize your planned project.

There is contrast between the traditional furniture and the focal point of the floor which pops, draws attention. I would recover the sofas in cream colored soft fabric - suede. I would leave the curtains grey, and put down a large neutral area rug. The edges of the room would show the pattern of the floor. I would color the wall and add texture to it, but not too dark as the room will appear smaller. Add a picture and put a nice plant holder, large vase in the left corner of the room - an oriental-style vase. Or, a cream-stripe fabric on the sofas. You could go soft or bold in this room - depending on your taste.

I think a comfortable distance between the island and the counter is around 42". It seems that you have only 30" between your cook top and the counter. I might be a little too tight. The wall between the entrance and the kitchen could be 4' long instead of 6', you would then be able to move the island a foot which would give you more room between the cook top and the island. Could you switch the location of the toilet and vanity in your dad's bathroom so your enter facing a vanity instead of a toilet which is a lot nicer.

Have you ever thought about floating shelves? I think pairing a few floating shelves together would look great and would free up space in your living room. I really like the Eugene floating shelf from Bryght and I think it would compliment your existing pieces. http://www.bryght.com/product/160/eugene-cocoa-shelf