I think the pot is too small for that tree. Also, it could stand to have one or two of the lower limbs removed as it has too much girth for where it's positioned. Agree with Julie about moving the green cabinet and red chair elsewhere so tree isn't having to compete with them.

Add a picture showing your floor

I have family of 5 and last movie night I got the been bag. I would put tv on a swivel arm closer to corner to improve viewing angle to couch, Keeping it at current height. Look for a small two seater to replace the arm chair. You may need to remove the plants that are near the chair to maintain walkway. A sectional can add a small corner seat but doesn’t help a lot. I prefer to put a table there so we have somewhere to put things and no coffee table.

Maybe this. I have added a small wall to give privacy to the 2 rear bedrooms and this is also why I faced the couch away. Also, The depth of the recess is better suited to couch than tv