Space is actually not a big issue - there are tricks and tips you can do make it appear bigger. As for me,, I live in an apartment which is not really that big. Here is an article http://sandybayapartments.webs.com/apps/blog/show/19513868-practical-concepts-for-little-bedroom-area -- that serve as my inspiration in decorating on how I am to maximize my area. I am sharing this to you for I know this might help :)

This is not the main living. This is a second living at the basement.so will be used for tv viewing and casual family time .Only issue is we will loose 3 feet on the right side as a landing space before entering the bedroom and also around a feet for the steps.After loosing this the area will be around 14feet *9 feet .IS it still ok for a sunken area or will it get congested?

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.

11' across x 14' can be a decent conversation zone. You have a nice window without too many privacy issues - good natural light, nice view of tropical foliage. The higher ceilings seem to be one of the things that will help the room feel larger - here's a completely different approach for you to consider . . I would instead make the beam a feature - wrap it in stained wood boards (that match or just a 1/2 tone darker than your entry doors) to make it seem a real beam - the small beam that comes out to meet it might be painted black and some faux black bolt heads and plates applied to get it to feel more rustic industrial / loft - afraid a fake ceiling is going to look cheap. The wood and black above will work with the off white walls. Consider instead of texturally painting the tv wall - let the "canvas" of all the walls stay uniform if you want this to feel large. The back wall is not the best for television anyway, if you want the room to feel large - the wall to the left of the door - (no window there, eh?) is the right place for a large flat screen wall mounted sort of center in the room (that appears to be the non-operable side of the double entry, typically unused) . Do a narrow console table underneath with drawers and lower shelves for the cable box. That can also be your laydown space and the rest of the room starts to live larger. I would run a large sectional in the beam recess area with the short end coming back just to become a lounge under the window (hang a stained board on angle brackets as a custom sofa shelf on the wall in the recessed end to fill it and provide a place for drinks) - the "beam" will make seating feel sort of sheltered there. It will work together . .you have a good long run nearly 8' there. If you want the room to feel big, a long sofa with a turn so many can gather for conversation is the best approach. Split the power for the television into two (easy 1 hour of electrician), patch this wall and hang wall mounted black iron sconces above the sofa back at two locations designed for the length of your sofa. Use a round iron and wood table at the sectional and a pair of great, small scale modern chairs facing the window set on the opposite wall. Consider a large scale modern abstract over the back of the sofa, and a gallery of black and white graphic photos framed in natural wood with black mats around the television on the tv wall. To the left of the window, hang some black iron hooks on a wall mounted wood board. With the wood, white and black iron, select your accent color carefully - neutrals for the main pieces - maybe some saddle leather for the chair pair. Color only in art - play off the green and white outside