Space Planning Advice for Combo Living/Dining Room?

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Q: After having lived in super-tiny 1-room student apartments for my whole life, where space constraints meant there was really only one way to arrange the furniture, I recently moved into a new space which allows for a bit more space planning and design. It's still quite small though, so I don't really know how to plan the layout for the combined living/dining room:

The good news is that I didn't bring much furniture and will buy everything after having planned the room layout. The only pieces I wanted to keep are a big wooden dining table with leather chairs and an old Chinese chest that will be a coffee table. So there aren't many constraints from that end.

What I definitely would like to have is one dining area at least containing the dining table and chairs, and a living room at least containing a small sofa, an additional (arm)chair, the Chinese chest as a coffee table and a 55'' flatscreen (plus additional appliances like HTPC ,etc.)

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There is some kind of alcove and I don't really know how to use that one. The only two designs I can think of are: 

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1) living room area with sofa etc. in that alcove (TV would go to the northern wall to the right of the windows) and dining room with table and chairs diagonally opposite, or...

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2) the other way round, having the dining room area with table and chairs in that alcove and the living room area diagonally opposite (the TV would go to the eastern wall). However, I'm not really happy with these designs. My style is a mix of art deco, eclectic, Asian/African. There is dark-brown wooded parquet in the room with white walls of 2,80m height.

Sent by Daniel

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Regina is an architect who lives with her husband and children in Lawrence, KS. As a LEED Accredited Professional and longtime contributor to Apartment Therapy and The Kitchn, her focus is on healthy, sustainable living through design.