This is a solution for an open space dilemma, using existing furniture and some added pieces to create the desired rustic contemporary look.
Dining area has been moved the opposite corner of living space. Dining table is now parallel to back wall, this creates separation, and flow between dining area and kitchen. Added coordinating lighting to both areas, as well as feature photo wall with different texture wall (renderings use wood board, but faux stone tiling could also be an option) create maximum visual appeal from all views. This creates overall tone for entire living space.
The former dining room has become a den/study area. Great, comfortable space for homework, art projects, reading, and socializing.
The former den becomes living/entertainment space. Exisiting seating, as requested, is used to shape direction of entire living space. The sectional is strategically placed on an angle to maximize this area and its views, as well as to create separation from other areas.
Area rugs are used to place neutral tones for style, as well as create designated areas and comfort.
I hope to add a different approach to your furniture layout, with minimal upgrades to create your desired look. Good luck with your designs :)