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The wall on the other end of the family room had a poorly located doorway leading to the bedrooms. It was towards the middle of the room and had the half moon top that we are trying to eliminate. Shifting the door a few feet to the left  would give the home theater on the right more room and improve traffic flow by shifting traffic outside the seating area.

To accomplish this the door to the master bedroom along with its return AC duct had to be pushed back.

A rather large window in the corner (white patch above) was removed to gain the wall space lost by removing the kitchen wall.

Now the family seating area/home theater section is isolated from the bedroom traffic and we have a place for our walnut furniture. Also added a track lighting to provide ambience light for the home theater and a 68" great room fan. 
The walls were painted a light shade of yellow to keep the room bright.