This kind of decoration is basically modern, with a little hint of industrial and I personally think that your rustic chairs will perfectly fit in with this kind of style. As for the Tv wall, I think it would be best to be positioned were it used to be. Being placed over the fireplace it is far above the perfect angle of view (in this case you will have two focal points: the fireplace and the tv; which is not a good idea on my opinion) Anyway, I have added an image were you can see have it would look like.
A sectional sofa is perfect for this room. I have chosen soft colors such as beige and warm grey. You can spice a little bit with colorful pillows and accessories. It would be nice to have an industrial lamp; such as the Bubble Lamp (made of brass or iron). It is also ok to use wood and as in the renders I have uploaded, a wood coffee table perfectly fits in. It is rustic and also toddler-friendly.
The tv wall it has a floating cabinet and it is made of two finishes: wood (matching the floor) and semi-lucid white. In the area of recessed nooks, I have designed shelves (at the lower height of the window). You can put pillows on that and use it for sitting or placing accessories.
As for the colors of the walls, I would recommend beige, warm grey (not very dark) but not white. It is nice to have a slight contrast between the walls and the ceiling.
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