Oh, now
this house is much more my style! Not too big to maintain, interestingly detailed, and full of light, views and fresh air. (I don't have anything against double-height living rooms as such... only when size is used as a substitute for being interesting. High ceilings are great for circulating heat if you're depending on a stove or fireplace to heat two stories!) S'pose the living spaces are a little cramped for entertaining, but that's not especially pertinent. The only thing it really needs is a basement or semi-detached garage, since there appears to be a critical lack of storage and laundry facilities.
Edit: Oooh... idea! What if the second-story interior balcony were extended out over the living room to the fireplace wall, then widened toward the dining area? You could probably get at least 6'x11' of usable area under the vault, which is plenty for a computer loft or studio. Leaving open space on either side ought to still allow plenty of natural light to the living/dining room while making it feel a little cozier. Ooh! And leave the support beams and underside of the floorboards exposed and continue them through the kitchen... coffered or beamed ceilings are fantastic, especially in sort of cabin-style houses. I'd probably also make the left side of the first floor into a rectangle for practicality... it should be possible to enlarge the bedrooms (and closets!) a bit and put the hall bath and a laundry/mudroom against the kitchen wall.
Erm. I think I need some architectural design software, maybe.