My Living Room - redecorating help!

When we lived in our last house we had both a formal living room and also a family room. We had beautiful couches for the formal living room and nothing for the family room. Mr.A & I decided on some nice brownish red leather couches that reclined for the family room. When we sold the house we knew that the colonial only had one living room and we weren't sure what to do with our couches. We ended up giving our formal couches to some friends of ours and we kept the leather ones. If only I could change my mind!!! The leather couches are just not working with the style I want. They are dark and bulky, they do clean up nicely with children but that's about their only saving grace. Of course Mr.A thinks they are comfy and loves that they can kick out and recline, he just doesn't see that style wise they don't work in this house. In addition to the couches not working, my living room is long, narrow and has two focal point areas. One is the fireplace and the other is the built in bookshelf that at some point had to have been messed with, some pieces are missing. If pieces aren't missing then whoever built the bookshelves never finished. I've tried to find some before pictures but there aren't many.

The living room when we first moved in.

On the left after the lamp is where you enter into the living room.

This is the color the room is now.

The way the room looked before I moved stuff around yesterday.

I always forget to take before pictures!  Yesterday I decided to redo the living room by rearranging the furniture.  Because the room is long and narrow I can never find a good place for the big couch.  It is always against the wall across from the fireplace.  I brought in the dresser that was in the dining room, took the sheer curtains from my bedroom, dragged a chair up from the basement that's waiting to be redone and switched around my pictures on the mantel and the wall.   These are the after pics.

So my living room needs help.  I hate the bookshelf looking half done.  I put the piano under it because I don't know what else to put there but I really want to move the piano to the dining room.  I would love a new couch and some chairs not a love seat.  I am on the hunt for a coffee table and am not even sure I like the wall colors.  So, anyone have any suggestions?  I am going to post a few more pictures of when I had the couches facing each other before I moved the white dresser in the room.  Maybe I could move the dresser where the piano is, Mr.A is not going to want to move the piano but we can do it.  I  think I'm going to go with the set up below but would love hear your suggestions and comments.  Thank you!!