It's your house do as you please. I'd wanted a LA for years, finally last April my DH and I ordered a Nolting Fun Quilter 17" on a 10 foot frame. I was like you, it would fit in the living room which is not used normally, we use the family room, but then I didn't want anyone coming in and seeing the LA in the living room. The other place that it would fit was in our master bedroom which is about 16x18 feet, so with rearranging the furniture the LA has a home along a 16 ft. wall with me having room to get around the LA with no trouble. As for my sewing room, it's still the 3rd bedroom and that is where it will stay. Don't want to change the set up that I have for piecing and regular sewing. In my kitchen when we had the house built, I have a very large wide counter top that I can lay my cutting board and watch TV if I want too.
Don't feel weird about putting your LA where you want it, it is what you enjoy doing.