Suggestions for Small Multi-Purpose Room

[Photogenic]

I'm looking to get some opinions on how the possibilities could be explored for a small room in my house that serves multiple purposes. I'm going to be living with two other people for the next few years and the space pictured below serves as my bedroom, reading room, listening room, watching room, and a place to host company. I'm currently using a 32" Toshiba TV from 2008 connected to a Bose Wave System I purchased around the same time and an Apple TV I bought last year. I've yet to add a really quality monitor or sound system. In February 2013 I'll be gearing up to upgrade my current setup. Ill be keeping the furniture in place and will use the wall bracket, but probably will be replacing the Toshiba and Bose. Right now I'm anticipating the purchase of a 32"-42" TV and a sound bar without the requirement of a receiver. But i could be persuaded otherwise. Please ave a good look at my current setup and contribute your thoughts.