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/

Since the lot you describe is smaller than my open living area, I would suggest looking at some of the "shotgun" house plans around New Orleans,LA. I think you can build up and back and get an interesting home with a loft for space. It can be done, A porch with an entry to a narrow hall at the back might work best for you. Will you plan a courtyard (closed)? or what? What part of the country are you in? What are your local codes?

In the layout below, I took the liberty to move to vanity and toilet so you don't enter right into the toilet. I am not sure if you have room for that since I can't see the measurements of the width of your bathroom. This is something you can discuss with your architect. The main idea of the layout below is to block the original entrance of the closet so you can have a bedroom door. The entrance to the closet/bathroom can be where your dresser is and move your dresser closer to the window. You would have a choice of a door that swings inward, outward or a pocket door. Personally, I would go with a pocket door so the bathroom would feel more spacious.

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.