Our living room is functional. We have seating and we have our television focal point. I'm one of those people who would prefer the TV not be a focal point but it's easy and it seems to keep the rest of the family happy. The kids mainly play Lego City: Undercover on the Wii and we have been watching a cartoon at 2pm which Nels and Daisy sleep through.
I have my little cluttered corner. It's mostly a mismatch of stuff right now but as I unpack boxes any sort of decorative or nostalgic items will go here. I like the cluttered look but hopefully I can get it to look a little more cohesive.