Also have a dual purpose room. We did inexpensive white shelving units around two walls, with fabric boxes to stash stuff, (office, and my "crafty" supplies), threw in a few decorative items. Got a tall basket for rolled up mats/foam roller storage, a complementary lower basket to throw in the requisite elastic bands, small hand weights, etc. Decorated walls with pics from our travels, framed with colored mats.

Unfortunately, you have made the television your focal point, the television should be on the wall where the art is. So put the art where the TV is and put your three seater lounge under it. the two single chairs go directly opposite the TV, also the ottoman should be a rectangle and the white chair should go to the other side of the room near the large window with a small side table as a reading nook. The furniture can float in the room and does not have to sit right near the walls. Also I would mount the TV on the wall and have a full width timber floating shelf (ideally with storage in it) about 30cm top to bottom. Hope this helps and the room appears more open and inviting. Lynda Natural White Interiors. naturalwhiteinteriors.blogspot.com.au

I think the tv unit is fighting with the timber floor & a rug would look nice with maybe this rug? http://www.catwalkrugs.com.au/sanderson-dandelion-duck-egg-olive-45808 picking up some of your cushion colours. Do you want to keep the tv unit? If you could integrate the tv with a wall unit depending on your style of choice to match a coffee & side table plus a tall lamp & either a mirror or painting too. Maybe lighter toned furniture could work.

I see what you mean with the mirror, maybe a large light canvas artwork would be more suitable using the command hooks, I think if you pick up the blue in your rug you can choose another rug to go in couch area, you don’t need to match it pattern wise, looks beautiful to have different rugs in similar toning maybe think about the lamps also with your little one , don’t want to topple over onto them, maybe artwork, luxury cushions and throws and plants in a low heavy pot that won’t tip over could look beautiful until you feel safe to add them, love your furniture.