If at all possible, move the furniture away from the walls. Are you willing to move the Television? You should add a rug in addition to the low coffee table. That will help you define the area. Rearrange couch and chair so that they are not side by side. Make the living room area resemble a square or rectangle with your seating arrangement. The easiest way to get quick free ideas, is to go to your favorite furniture store and take pics of the furniture arrangements. You will find several fully function living room arrangements on very small foot prints. Good Luck