Thanks for the additional info and photos, EL, and what a clever husband to construct the model! If it were me, I would install the heater on the wall in sitting/dining room. I say this location as it is tucked away a little better than the location behind kitchen wall, and seems safer (for people walking past it when in use), to me anyway. The TV could be placed or mounted next to it, but far enough away so heat doesn't affect it in any way (not sure if that's a consideration). My folks had a large wood burning stove installed in their old house long ago, to replace the original fireplace. My mother used to cook large pots of homemade soups on the top of it, letting them simmer all day long - the aromas were amazing. Your house project is exciting. Best wishes.

Your lounge chairs before were too chunky for the space so the backing and arms on the tan couch were good for your room. Having a corner lounge only gives you the one option of were to place it and depending on the length it might be to big. Take the rug away and move everything out and mark out a floor plan with painters tape. Those two wing arm chairs are lovely and you should try to utilise them in your layout. You need something on the window wall to balance out the room, I'm not saying a couch but maybe the armchairs or an ottoman or a hall table that has thin legs and the light still passes through. Most photos pictured above are of large rooms and trying to replicate it in a smaller area is hard with the limited furniture options we have in Australia within a reasonable budget. But having anything within that area that is too chunky will look cluttered and claustrophobic. Measure your room and buy pieces according to how you live. If its a family only room fill it anyway you want. If you are having guests, personally I hate sitting close to others so a sectional wouldn't be ideal as I know I'm not the only one who doesn't like sitting with others too closely.

Is this a new build or is there an existing fireplace? Do you want the fire for heating or aesthetics? If it’s for hearing is this your primary source of heating? Do you want an open fireplace or one that is enclosed like a wood heater? If it is to be used for heating then consider a wood heater, especially if it is your primary source of heating. They are much more efficient than an open fireplace. They can be freestanding or inserts installed into a fireplace. If you want an open fire and are more interested in the fire because of the aesthetics then consider a cast iron insert such as a jetmaster, which can be used in a fireplace of your choosen material, as long as it complies with building codes and fireplace regulations. They are much more efficient than a plain brick or concrete fireplace but less efficient than a wood heater. If you decide on an open fireplace, ensure that your chimney can be closed off when not in use or you’ll lose lots of heat up the chimney. Best of luck

It's great you are thinking of the wood storage solution early on - so many people focus on the fireplace and forget that they will need somewhere to put their fuel. From a safety perspective you could include some design features in your bench seat (a curve or slope) that makes it difficult to accidentally have combustible items like cushions come into contact with the fireplace. Although this may not be necessary depending on what type of fire place you are installing.