I personally think you’ve made great use of the space. I’m not a humongous fan of the backdrop to the bed, nor the bedspread, but that could be a matter of taste. If you chose to get a new comforter/pillowcases, I’d stick to a similar color scheme - it looks very clean and minimalist, which is important in a small room.

Someone below said you should choose between a bedroom and a lounge area - i disagree, for multiple reasons. Firstly, the fact that it is your living area, and secondly, you’re not “entertaining” in a studio apartment. When I lived in one, I’ve always had a relaxing area and a sleeping area, unseparated. It’s not weird (to me) to sit on the bed and chat with people sitting on couches or chairs.

If you’re dead set on entertaining, you could try to reverse the living/sleeping areas and use a divider of sorts, but i don’t think that will look fluid. I also think that it will starve you of much-needed room to not feel claustrophobic in such a space.

Best of luck, i think you’ve done great!