To answer your questions ... We will be purchasing new sofas, coffee table etc for this room and there will be no TV in this room :)
I would love to hear your suggestions and feedback, as always :)
Also, would you recommend floor lamps or side tables with lamps on them? If so where would you place them?
Our formal lounge room is a part of a large open living space and right next to the dining room.
And here is a slightly outdated photo of the space before we moved in and while the kitchen was still in progress.