Help! Input design for living room needed

Hey everyone, we are currently trying to redisign our living room/dining room but nothing seems quite right. Pictures is how it is currently vs how it was virtually staged when we bought it. Note there is not enough space above the fireplace for a tv. We are looking to buy a new couch and cannot decide between a leather L shaped one setup like how it is currently or a modern smaller one like the staging photo. We also have no idea where to put the tv. It has been on the fireplace step up since we moved in. Please help!