glenfinnan I've just re-read your OP and you have hit the nail on the head: our house now feels like two flatlets with a shared kitchen. Someone could easily live in the downstairs guest bedroom and the only room in the house we would meet up would be the kitchen.
I don't include the lounge because (a) many people nowadays (I might even say most) will watch or read stuff on their laptops or tablets so don't need a big telly, and (b) our converted room has a door that opens on to a patio so if they want more leisure space, that would be it (weather permitting).
I have never regretted doing it. When my son and DIL and the little one come to visit now, they are almost independent, and we do not have a big house. The new room has made all the difference.