Design Dilemma: What Would You Do?

So, I've been painting the Family Room.  Which means I moved some things out of there.  When I moved the piano out, I put it in the Dining Room.  Then I was reminded of my Master Plan to turn our Dining Room into a Music Room.

We *love* our music in this house.  The boys adore dancing while their Daddy plays guitar or piano, and I just hate it that we've had guitars shoved into closets for...forever.  Meanwhile, we use our Dining Room a few times a year.  So, I think we need to make better use of the space we have and really use this room.  Yes, it's the one room in our house which was decorated to my satisfaction.  And now it looks like this:

A scene of chaos and destruction.

I plan on bringing in a round table and an upholstered chair, bringing in the guitars and changing out the wall decor.  So, here's the dilemma.  I have this antique china cabinet.  It is clearly a china cabinet and not even remotely "bookish."  Should I leave it in our new Music Room?  Should I put it elsewhere?  Can I use a china cabinet outside of a Dining Room?

I think I will also need to relocate our wine rack...but that's totally manageable.  The china cabinet, however, needs your help.  What do you think?