The floors are fine and it's not an overwhelming amount of wood at all. I would paint all of the walls orange, though, and perhaps choose a good ceiling color as well so that it's not stark white. a creamy yellow would look really nice.
because the dining table and chairs seem to be the same color as the floor, a rug under that table that brought in the reds of the curtains, the oranges, and yellows would look really nice.
but, Scale and Placement are your two big issues.Placement
The pictures are hung too high. If you hang them at true "eye level" they won't look disjointed from the room itself as they do now.
the furniture is pushed against the wall and in a strange configuration. I know that people think this means "more space" but in truth, having things *away* from the walls makes it look like there is more space. in this case, there are only two or three things i would have against a wall: the piano, the tv, and the bookcase. but not on the same wall.
looking at the space, the door opens to a wall. there's a window on one side of that entry and a wall on the other (that touches the banister). I would put the bookcase on that wall or one on each side of the TV or one on each side of the piano (to give both of those items more presence). The TV should go on the wall where the large sofa currently is, and the piano can easily stay where it is.
I would then put the sofa by the banister, but *away* from it with enough room to walk between the sofa and the banister (in decorating circles, you need only 18 inches to be a pass through). Then, perpendicular to the sofa, with the back of it facing the piano, i would place the love seat, and then the ottoman in front. this way, you walk in the door and see an L shape. A side table should go between the sofa and love seat, and if there is space, you might consider a console or placing the book shelves *behind* the love seat. You might then place an "occasional chair" (wood and fabric by the window that is by the front door. Another option is a tree that has a nice shape--such as using a dwarf orange tree in a very structured (square, french, fence-like) pot.Scale
The pictures are too small. If you are going to get new art pieces, i recommend making them personal. Using your own photographs or children's art, choose the top 12 or so, and frame them up the same. hang them in groupings that are multiples of 3 (3, 6, 9, 12, etc). make sure that they are comfortably spaced.
you want them to be the same size and shape once framed, btu here's the trick to making that work: mat board. say you have a favorite black and white 5x7 photo, but you have chosen 12x18 frames. mat board fills the rest of the space. Mat boards should also be a neutral tone (perhaps the creamy color of your ceiling or a warm cafe au lait color). Your child's art is only 8.5x11--mat board.
the benefit of having frames (and mat board) bigger than your art is that you can standardize it. some photos are up and down (7 high and 5 wide) and some are side to side (5 high and 7 wide). some art is 11 x 17 or 17 x 11. by using mat board, you can keep the frame going the same direction, but the art can be any direction that it is. KWIM?
Then, you hang it in straight lines in groupings of three. It's likely you'll find a lot of homey, beautiful and personal art in your home collection. And anything can be framed. I frame a lot of plain paper (from the fair trade shop) and fabric swatches. Anything that floats my boat really. Frame it up and it's art. Who needs prints?
So, for example, in your dining room, you could hang 9 personal art pieces from basically the mid-point of the wall up beyond eye level. This changes the scale of the artwork. It makes it look like a collection and has a presence. do the same near the piano. three across the top (that would extend beyond the ends of the piano visually.
The issue of scale with the TV and piano is that the walls are situated such that it wants to have a "full" feeling (imo). so, if you put book cases on either side of the tv and either side of the piano, it has a more "built in" look and warms up or fills in the space nicely. makes it feel balanced.
so, here is really how i would design the space all the way around.
1. paint all of the walls the lovely orange color and paint the ceilings a creamy color;
2. add red curtains where ever needed;
3. put a rug under the dining room table to give the table more presence (and differentiate it from the floors and banisters since the wood matches);
4. keep the piano on the existing wall and put bookcases on either side of it (in the same wood tone if possible);
5. put the TV where the big sofa currently is, and if needed, put bookcases around it so that it has that 'build in' look (might also look on craigs list to see if you can find a unit that would fit the space);
6. put the new furnishings in an L configuration with them away from the walls (with at least 18 inches pass through if possible)--the sofa goes where the loveseat currently is, and the new love seat goes perpendicular to it "blocking" the view of the piano;
7. choose a side table for the corner of the L between the sofa and love seat--i would recommend a round top pedestal table in the wood that matches the book case, tv stuff, piano (even if the table is higher than the ends of the sofa, this is ok. you could use a small cafe table sized table, for example, that height, and it will be find as long as it is a lovely table--again, try craig's list and the like. there are a lot of lovely tables out there that people are trying to get rid of).
8. in the corner window by the front door (nearest the wall that i would use for the TV), consider an occasional chair or a plant (an orange or lemon tree in a nice planter). My own tastes are minimalist so i would leave this corner empty or perhaps put a basket there to hold blankets and such, but i would likely keep it empty.
I hope this answers your questions on how i would do up the space. it's actually quite a nice space, without too much wood at all.