Thanks Louie and Georgi for your comments. Great suggestions for me to think through. Thanks for taking the time to provide that detail. To help see the space a bit better, I've taken out the wine rack and replaced it, temporarily, with a shelf (that was in a different part of the house) that matches the one holding the water filter (the second shelf is to hold our phone and modem - again, due to a small house, it's really the only place the phone and modem can live). Plus, I've extended the table so that I could get a feel for the size table the area could potentially accommodate, now that the wine rack isn't there. The size of the table with the extension is: 1800 x 840. Ignore the look of the current table - regardless of whether we go banquette seating or not, we would like to change the table and perhaps a pedestal table would be best so that it makes it easier to get to the seats at the back. By the way I noticed that when I look at this post on my iPad I don't see all the photos I included like I do when looking at it on my laptop. Hopefully the photos I've included show okay for others looking at this. Thank you.

I honestly can't beat the suggestions that have been given above, but yes, de-clutter the desk area (clock, wastepaper bin), find a large print to go above the desk (this will draw the eye first), replace the desk chair with a nice upholstered chair that fits better in a lounge room something like the upholstered dining chairs that are popular at the moment http://www.westelm.com.au/mid-century-upholstered-dining-chair-velvet-h2338 (if budget is tight, even Kmart have similar?). Finally, I do think the warm earthy tones of the walls/carpet/curtains are jarring slightly with the cool white & aqua tones of your furniture. Possibly repaint the walls, ditch the cream curtains? The carpet you probably will want to leave, but I think these other colour changes would probably make enough of a difference. But that outdoor area is so lovely, I would try to bring that in, with a few indoor plants in the corner, plus mirroring some outside. Then also potentially a mirror on one of the adjacent walls will bring in light and reflect the outdoor view into the room. I wouldn't stress too much, it's a great room and settling in, tweaking and 'nesting' takes time!

All the 'sad' and disapppinted people commenting here; those who 'dislike this and that, or want to see 'character' retained, etc, etc, ought to get out more; to go see the world. As far as I can see, much of the architectual integrity HAS been retained. Is this 'sadness' a Victorian thing?; must we save all the old buildings, all the trees, the whole planet - from what? For what? Despite the hype, we're not likely to tip the place off it's axis anytime soon. Likewise with older houses; give them fresh breath, i say. Using whatever our creative and forward-looking brains can offer us is a positive solution to all things. My recently renovated heart agrees! This cosmetic reno' is nothing short of a grand improvement on its' former presentation; it's lighter, brighter and far more livable; refecting the owners outlook on life, I'd say. So, to all the 'experts', to those who want to pretend that they'd prefer to live in the dark ages - say, the 70's which were notoriously bland and most everything built then was built to a tough budget. ( I remember building in the 70's, in the 80s', renovating and building in the 90s', the nouties and still renovating now; i just can't seem to leach it out of my DNA as I complete the restoration of a 1930's Cal' Bung', one runied in the 70s' by some hapless 'handyman' who insatlled a plastic Chub and added a Victorian bull-nose verandah! All my homes turned out differently as my tastes and budget changed. Beginning in 1974 when I painted the front door of my 60's 2-bedder, bright yellow, the weatherboards 'Conifer'; the darkest posible green, now cracking in the sun, no doubt! Or has it been renovated by some 21st century house-hipsters? Then in 1976 I chose Avo' toilets, basins and bath ! Used native timbers, unpainted T & G everywhere, too ) I pulled out 'space wasting' french doors and installed open arches ! And wall-papered everything that didn't move. Not every so-called 'mid-century' home is a classic, or is worth preserving. Like this one probably was, they were pretty darned ordinary, particularly compared to those of the Victorian, Edwardian, the Art Deco and Californian Bungalow styles before them; all of which HAD definable chararcter, had enduring stlye; and are much sought-after and highly valued for having it laid, thickly, throughout. 70s' era homes were / are lacking wholly in character; and they lacked space, lacked insulation, lacked lots of design and comfort amenity we all want and deserve today. They're, nevertheless, given a new and longer life when younger eyes and energy are applied to their renovation, design and decor. Good on them!

I love what you have done with your renovation. I am very partial to large open plan living spaces. My only suggestion to this room would be to have 3 couches instead of one couch and a single chair. Situate one facing the tv and two on either side facing each other. This will define your space, encourage guests or family to talk and give a cosier feel to that area. The down side to large open spaces as mentioned by others are cooking smells, noise, heating and cooling costs. If the homes large windows are north facing with large eaves or shading for summer, the walls, floors and ceiling are well insulated and you have a well sealed home.This will dramatically improve the feel and comfort of this lovely home with out having high energy costs. I really hope your enjoying your new space.