I have a 2.5 yo DD and a 6 wk DS. I find the designated feeding area idea fascinating cuz I am nursing DS EVERYWHERE! Essentially I nurse in every part of every room, often walking around. I have strategically placed water bottles, boppies, pillows, burp clothes, baby slings all throughout the house. Sure I have a favorite nursing spot in each room but it doesn't work for me to sit there. It just doesn't seem interactive enough for DD and me. A lot of times I will start at the glider or the bed but DD wants me to do stuff with her then I just walk over with DS nursing to the book shelf/play tent/sofa/futon/TV/whatever. We don't have a designated nursing time activity for DD either. With DS nursing every 1-1.5 hours, I can't imagine making DD do same kind of activity with each feeding! We just do everything. Having the baby didn't affect the kind of play we do much. Sometimes I just hold DS sometimes I wear him. But here are the things we do that come to my mind now...
-watching family photos on my computer
-listening to music (together) and dancing (just DD, haven't tried nursing & dancing at the same time!)
-watching DVDs (I know, I know)
-doing wooden puzzles and sinple board games
-talking and really having conversations (amazed DD is old enough for this!)
-pretending to be mommy/baby depending on her mood
-running off by herself into another part of the house and then talking to me from there "mommy, guess where I am"
-playing in our backyard playground
Now, having mommy's attention split is a whole different beast from how to spend the nursing time. DD had a pretty rough couple of weeks right after the baby with night terrors and all. I'm so glad DH was home to help weather through that. Now DD is playing with DS, which surprised me. Last week DD was playing peekaboo with DS and they were both laughing! So precious. I thought it wouldn't happen until baby was like 6 months or something. But DD still has rare moments when she just need me without the baby. And that is a really tough call. I can see DD is distraught and she begs me to put down the nursing baby and hold her. And you know what, I actually do. Just a few moments really means the world to DD and baby cries a bit but he's OK, at least that's what I tell myself. Also since the baby, DD is not sleeping through the night (she did since 9-10 months old). Most nights she wakes up 2x, calls for me crying, then asks me to bring her something like milk or yogurt. I tuck her in, say I will bring it, kiss her forehead then leave. She falls asleep and I don't have to bring anything. She just wants the assurance. These are the things that seem to help...
-I (not DH) always go to her at night, sometimes with DS nursing on me
-as soon as DS is asleep, we do something special
-I talk to DD and baby about each other "baby isn't DD a such a nice sister for bringing you this onesie?" "DD, what did the baby say, oh, baby talk?"
-I "make" baby wait for mommy "baby, mommy's helping your sister right now, mommy's coming right back"
-lots of hugs/kisses/body contact with DD
-give DD choices as much as I can handle (DD's & DS's wardrobe, activities, what to eat, etc.)
-talk about DD"s emotions/needs with her (again amazed DD is old enough for this!)
-have special Daddy/DD activity where mommy or baby is not allowed (music class, gardening, kite flying, etc)
Overall, I am pretty tired, but having the baby & toddler is not nearly as hard as I had feared couple months ago. So good luck to you and just try to stay positive and get help where you can.