I'm certainly no expert and not trying to offend, but perhaps your friend is correct. The room does seem to have an 'industrial' tone to it. Since you've already de-cluttered your pegboard, I think maybe you're on the right track with cutting it down. Possibly have a couple of different spots for that. One quite utilitarian and maybe the other(s) a bit more inspirational?
It seems like you might be looking to cozy up the space a bit. Do you have a quilt or 3 that you could drape over your chair to soften things up a bit?
As to the new table, are you interested in getting something with a lift possibly? That would at least get you to the set in you want for daily use and allow you the flexibility to use the embroidery function when wanted/needed?
Can you put some of your containers under your cutting/ironing stations? Gets them out of the way/declutters but still leaves them accessible?
This is about the best I can come up with at the moment. I'm sure others will be along shortly who are much more creative.