living room lay out

Here are some photos I took tonight, so you can get a 'feel' for the living room space.
(horrible photos were all taken at night... sorry!)

 Walking straight into the living room area (it forces you to turn right into the playroom, or left into the living room)

Once you turn left into the living room.  (excuse the mess on the counter tops)

Opposite wall.  This is what the couch is facing.

Standing next to the back door.  (see photo #1 for reference)

 Standing by the entry way from the kitchen into the living room. (at the flooring change from tile to carpet)

empty floor plan (chicken scratch, not to scale)

We are looking at new living room furniture but I cannot pull the trigger because, honestly, I still don't know what I really need for the space.  This living room will be what a lot of people consider the 'family room'.  This is where we will entertain, watch TV at night (before bed), sprawl out on the couch, etc.  This is not a formal space, but it is wiiiiide open and and the center of the home - so it needs to be put together.   Here's the breakdown:

1.  Comfortable

2.  Seats enough people for a family of 4, plus guests

3.  Furniture arrangement flows with the kitchen and back entry way

Seems easy enough, but for some reason - not at all.  I cannot commit to a sectional.  For years that's what I pictured our next couch would be... but I'm not sure.  So I turn to you, loyal readers, for advice.  I have three different "floor plans" that I've done up.  What do you like about them, hate about them, and what would you do in this space.  

This is our current set up.  It's sad.  The love seat is way too small, the chairs are hideous... it's bad. (text says "ugly chair". "ugly ottoman", "tiny couch", "dog bed". 

OPTION NUMBER ONE

This set up has a large couch on the wall, and a love seat going in front of the access from the kitchen.  There would still be plenty of space, but if you were in the kitchen you would be looking at the back of a couch, and you'd have to walk around the furniture to sit down.  There would be a chair near the back entry in the living room (similar to where one chair is located now).  We don't want a traditional coffee table.  I think we'll get an over sized ottoman regardless of the furniture set up.  This set up feels a bit more 'formal' to me than a sectional - but I don't think that's a bad thing?

OPTION NUMBER TWO

This was my initial plan:  sectional with the 'L' going on the left side, with a chaise lounge on the right side.  It still 'blocks' the kitchen entry - but visually it would be more open than a love seat because there would be no back.  This includes a chair in the corner (where the dog bed currently is... see the first photo in this post) for extra seating too. End tables would flank the sectional because we wouldn't have a coffee table to put drinks down.  I *could* even put a table behind the couch (a la YHL).

OPTION NUMBER THREE 

This is the same sectional as above... without the chaise lounge.  End tables (with lamps) on either side, and a chair in the corner again.  I worry about this set up not being substantial enough - or providing enough seating.  But I do like the open feel of it....

Thoughts?  Please share.  Spacial planning with furniture is certainly not my strong suit!  Use that handy little comment feature below!!