I tried to go with a pretty, comfortable space with touches of farmhouse/rustic cali/ and to incorporate those deer head of her husbands which I actually love. I think you should keep it where it is on the large wall, above the t.v. I also think a gallery wall would be the perfect way to incorporate the photo of your husband's Dad with the horse.
I think the large wall is the ideal place for the t.v. unfortunately, since mounting it over the fireplace will make it pretty high for optimum t.v. viewing. If that's okay with you guys, then I've included several layout options! I do think you should update your fireplace - taking woodwork all the way to the ceiling and mounting the t.v. on it. I just think it would look nice to take it all the way up since the ceiling is low there. I also took away the console & artwork hanging on the wall between the dining room window and the fireplace, it was looking a little crowded and took attention away from the focal point of the room: the fireplace.
I'm suggesting you paint your whole room a very light taupe. It's warm yet neutral and it will updated the space. I've also kept the base colors of the room very neutral and given you a high-contrast accent color in navy blue. I think that even though it's a dark color, in contrast with the other light tones of the room, it will look great!
I've kept your dining area a little bit more formal and the living area dressed down a notch. I think it's always nice to have a little more sophistication in the dining area, yet it all ties in nicely with navy accents. I think this area needs something special besides just a different chandelier, and I love the idea of this bench pulled up to one side, instead of the chairs. It just gives it more character.
My 1st choice of layout.
2nd choice, but less seating (only one sofa).
The placement of the chairs doesn't cut off the space as much.
T.V. placement over the fireplace.
My least favorite layout, T.V. on small wall near entry.
navy drapes $105
paterned drapes (2) $109
traditional bench $251
striped bench $706
backless bench $239
China cabinet either wallpapered or painted on the inside.
You can also line the back wall of your china cabinet with painted poster-board
(to avoid painting the actual piece).
option 1 $75/roll
option 2 $60/roll
or paint bm stone harbor
entry rug $130
sofa in beige velvet (2) $799
sofa in buckwheat velvet (2) $1,799
patterned rug $999
cream rug $599
blue velvet pillows (4) $240
striped pillows (4) $156
lumbar blue pillows (2) $96 for two existing chairs
SIDE TABLE OPTIONS
wood side table $80
metal side table $80
metal side table $499
leaning mirror $359
candle collection $48 (mantle decor)
COFFEE TABLE OPTIONS
coffee table $599
coffee table $230
MEDIA CABINET OPTIONS
media cabinet $1099 *1st choice but pricey
walls bm edgecomb gray
trim bm decorator's white