I have written it somewhere before: Friends have their TV on a rolling cart. When needed, it is simply rolled to where it should be watched, otherwise put away behind the sofa. The cables remain connected, the thing is ready to start immediately. The living room has become especially nice precisely because the TV does not determine the image and the atmosphere.
No matter which option you choose, I would not take an L-shaped sofa. Too bulky and not sociable. With small pieces of furniture, you can still give a small room a feeling of spaciousness. I have a multipurpose room of "only" 36m², also square. Because of the furnishing, it is really not cramped at all and practically arranged. I advise you to already start looking now at which furniture, especially sofa and seating furniture, you would like.