Very good suggestion, ypg - I think if the OP furnishes their living room in this way, it will be a nice room where the whole family likes to spend time. I personally would tend more towards the one with the lighter accent colors from both suggestions, but this is a matter of personal taste.
In my capacity as a dilettante hobby musician, I want to encourage you, OP, to definitely keep the piano in the living room. It is part of your well-being and leisure activities and should therefore not be "banished" to a side room; in that case, I would rather place the TV in another room and also take a very critical look at the book collection and consider which books absolutely have to be in the living room (e.g. because they are beautiful (picture books, for example) or because you constantly read them). All others I would – if they cannot be disposed of – put in a nice bookshelf in the guest room, bedroom, or hallway (or in the bathroom – some visitors will be happy about that, too)!
By the way, just from the photo, I don’t find your living room spatially unattractive at all – it’s not "modern," that’s true – but I think with a suitable, well-chosen design, this can be a room where you like to spend time. Don’t lose courage, don’t get lost in details, but accept things as they are and make the best of it with the means available...