At the moment I'm leaning towards a mix of the two ideas!
I don't think an L shape sofa will work, so having a 3 and 2 seater sofa (arranged in an L shape!) will give the same splitting of the room, whilst allowing easy access to dining area/kitchen. The TV as you say will be to the right of where it is in the original pic, in the corner of the feature wall near to the main door. The projector screen will still go over the bay window, with the speakers there as well with the option for 7.1. I think this idea has all the benefits of using the bay window with not many of the negatives! Having 2 sofas will also allow for changing my mind in the future haha. What do ya think? Hope that at least makes sense lol.