You may or may not have seen it in this post about my failed attempt at working out... yet again... but we made a little couch for Kate. Very simply, I exchanged the chaise cushion for a regular one, stored the chaise support, and plopped the cushion on the floor.
It fits perfectly against the wall, and provides a place for Kate to sit, rest, or even play while we hang out downstairs. She will sit and watch some TV for a few minutes, but most of the time she is up and running. Literally.
She seems to like having her own little space to sit. We'll probably keep it set this way for a while.