Work in progress: Living Room

Not going to lie--I've put off our living room for awhile now. 1 year and 3 months to be exact.
I would love a glamorous living room, but comfort and function (nothing wrong with that) are taking precedence at the moment due to the following realities:

1) Until we get the family room finished downstairs, our living room has to be multi-functional--huge TV and all. Which we had to stick (temporarily) in the atrium alcove because of the room's odd layout.
2) We have a ginormous hairy dog whose clumsy body is the ultimate party foul. No breakables, glass coffee table, or sharp corners present if we can help it. It's like having a toddler around.
3) Until the "man cave" is finished downstairs, this room has to be comfortable enough for Mr. FC to lounge around in whilst watching the annual steamy Victoria's Secret Fashion Show masculine programs.
4) We do live in Colorado, so rustic elements are inherent, whether I love it or not. Hence the wooden beam and the odd atrium alcove that is the bain of my existence.

So I'm finally tackling the challenge of pulling this room together. With the aforementioned disclaimers in mind, I present to you our work-in-progress living room.

This is the first room we painted when we moved in and it's one of those colors that changes with the light. Sunny=warm, latte color; cloudy=cool, latte color with grey undertones.
Wall color is Valspar Arid Plains (matte). My favorite piece: the rustic/glam starburst!
Tufted storage ottomans from Target. I just adore this gold faux croc tray from Home Goods.
And of course, the Domino book and the latest issue of House Beautiful.
*crossing fingers that this mag will not fall victim to the flailing economy like so many others*
Lamp base from Home Goods and shade from Pier 1:

To do:
*replace the fireplace insert and tiles
*buy new sofa (maybe?)
*buy some dog-proof accent/console tables
*convert the atrium alcove into bay windows and a window seat with storage underneath
*Would love 2 of these Z Gallerie Labyrinth pillows for the sofa.
But we have way bigger fish to fry, so I'm content with how it looks. For now.......... the fun never ends! For the Husband to agree to all this, I'm convinced I'll need to get him extremely inebriated. No worries; it's gotten me this far hasn't it? =)

*Also stalking this lovely floor lamp from Pier 1:

{Just for giggles: this is the only before pic we have, taken before the Brazilian cherry hardwoods were installed.}