I've had the two couch thing going for a while now and I've really enjoyed it. If I have a friend over and we're watching television, we each get a couch. Two couches fit a lot of people when I have a party. They double as beds if people need to crash. But lately I've been curious — perhaps a sectional and a chair, or maybe even a couch and two chairs — might be the way to go when I get around to redecorating.
A sectional and a chair (preferably with an ottoman): A sectional is certainly nice for cuddling. The long section almost invites a snuggle when you're curled up with your partner watching TV. It's good for sprawling. If there are two of you, you can each get your own space but still keep connected, someone's feet or head in someone else's lap. You can play a board game on the couch and still have room to stretch out. And its L-shape is a natural for inviting conversation. At a party, you can't help but get cozy when everyone dives for the same piece of furniture. And someone can always escape to the chair if they need a little alone time to snooze or knit or game or read.
A couch and two chairs: This is a more old-school, classic arrangement. It's particularly good if you like your space but still like company. Especially if your two chairs are nice big club chairs, you can sink into them, park a drink on the arms and dive into a book. Small children like them because they can curl up in them and feel safe. A friend of ours who has dogs particularly likes this arrangement. Each dog gets a chair and guests can sit on the couch without being covered with fur when they get up. This is also a good choice if you're a serious gamer. Somehow a good gaming chair beats a couch every time. You can bounce around without disturbing your gaming partner and if the chair lets you lean back, so much the better.
Four Chairs: I considered this arrangement and quickly tossed it. No options. No room for sprawling. Too formal. Too limited in the amount of people that can comfortably sit in your living room. Which, for me, defeats the purpose of a living room: having a space where your friends want to come and hang out.
What's the arrangement in your living room?