It always depends on what you use the piano for. If you practice a lot yourself, then in my opinion it even makes sense if the thing is NOT in the living room, because you can rarely practice there calmly and concentrated (I don’t want to know how many hopeful pianists have been lost because the family piano was in the living room and one couldn’t practice in peace).
But if you rather use it to make music together, with family, guests, ensembles, then I think it is quite justified to have it in the living room.
The OP planned from the beginning to have the little piano in the living room - I assume he has good reasons for that. So I would rather take that into account when furnishing.
I think Baufie expressed it a bit too drastically, but I have also hinted at this twice: not everyone is gifted to furnish tastefully. And that has nothing to do with the budget. There are god-gifted people with a knack for beautiful interiors. They also often have good ideas and create brilliant furnishings with a few things and some witty ideas. Others can put super expensive furniture in the house and it still doesn’t become cozy, not to mention an “aha” effect. I think it speaks very well of you that you accept that and know it.
Now practice the second step: accept the suggestions. I still have the feeling that you try to find a counter-argument to every suggestion. That won’t get you any further. Again the suggestion to maybe find a professional who supports you. First set the budget and what needs to be renewed now and what you might buy in a few years. But now develop a consistent concept - the implementation can then take place step by step. The kitchen must be included - I assume it is new. Or is it something brought from the old apartment and will be replaced at some point? Then you can neglect it for now. But I assume it will stay.
If you actually get a professional, collect pictures of rooms you like beforehand from the internet, magazines etc. The professional will recognize what “turns you on” and realize that within your framework. When I see the picture of the sofa that you like so much and the reality – I am perplexed that this is the same person! And that is exactly where you need someone who connects the two. Because obviously you see beautiful living possibilities elsewhere and recognize them. And when it comes to implementing a style, an idea within the framework you have, that is exactly where you need support. I admit, I would never have built like this, but honestly: it is not impossible to design the room nicely. I know other living rooms where I sometimes wonder if anyone ever thought that people are supposed to live in them. You have the possibility to place furniture, it is bright, and the rest is doable!