Which setup is better ?

Place one love seat below window, place other love seat directly across but facing eachother with the carpet in the space between them. Wall mount the TV centered between the 2 love seats.

Place a kitchen table on the other end of the room. Get some plants (if you like that type of thing). One definitely beside the window sofa.

Get a big piece of wall art to hang by kitchen table.

The entertainment center/TV-shelf thing would be removed from the space. Or utilized differently if doable.

With this arrangement you would have an open space between the couches for the rug and for activities (or a coffee table, which you could easily move for activities on the rug). Good for being used as a social space as the couches face eachother or for a movie night space as they both allow the TV to be seen still. You pleasantly get to be by a window when sitting on the one love seat.

AND you still get a dining room area for eating/working/projects/activities/extended kitchen counter.

If that wouldn’t fit I would get rid of one of the love seats and go from there.

This is just off the top of my head it is hard to gauge the size of the space by the pictures.

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