Re-Purpose the Living Room?

My home has both a family room and a living room. Since I've had my home, I've used the living room as a formal space. Which means it really hasn't been used. Since I hate the idea of wasted space, I'm thinking of re-purposing the living room into a a comfortable study/tv/reading room.

Right now, I use my family room for the tv/reading room, but because the room is so long, furniture and tv placement is difficult. As you can see by the picture below, I only have one real wall, as the opposite is open to the kitchen/breakfast area.

This is my current formal living room. It's much more convenient for tv viewing and is much cozier for reading.

Here are the (proposed) details of the re-purpose.

1. Paint the formal living room the same neutral color as my family room.
2. Move the large tv armoire into living room, and paint it white.
3. Add some comfortable chairs.
   

Have you re-purposed a room? How did it turn out? I would love to hear your thoughts.

:) Enjoy.