Dream! Agree, its amazing. I think it could be improved with just more decorative pieces - large floor cushions, comfy seat cushions, bit more colour! Just to really make it feel like an oasis :)

The area appears well-lit, although the fixtures do not appear in the photo. Perhaps some post lights behind the benches and get rid of the overhead carnival lights.

Put a table top over the pit during the normal times, so the kids can kneel on the cushions all around and have a game board or activity/project area.

When they get to be teenage, you can mount some screens in front of the area, so they can be hidden from your view, yet still at home, under your protection, and near the refrigerator.