Take another look at the before and after floor plan, paying attention to bedroom closets. Sure seems like they were an afterthought to the original plan or maybe some desired floorplan was altered. Who knows?
Before and after pictures of the closet removal from the living room:
The space gained in the living room is significant when it comes to fitting and arranging furniture.
Removing the old closet from the other bedroom provided more space in the kitchen and a better shaped bedroom. Closet was relocated.
BEFORE:
Bedroom was opened up to new closet and bathroom (adapted from old master bath).
Dividing old master bath:
Two new door openings in bedroom wall:
Bedroom now has a new closet and its own full bath.
Since kitchen got two updated fans, the ceiling fan previously in the kitchen was relocated to a Bedroom and smaller fan was purchased for other bedroom, so now all three upstairs bedrooms have fans.
Climbing Downhill 
You didn’t mention anything about fixing or relocating your lighting for the bedrooms and the living room. When I re-did my old home, because of the space changes I had to re-do my lighting. Good thing I still had access to http://www.lighting55.com They were the guys who helped me out.
Thank you for viewing my post and for your relevant comment. Not mentioning lighting was indeed an oversight. It seemed so minimal in light of moving walls. (Puns intended 😉 )
We replaced both bedroom ceiling lights with combination fans/lights. In the living room, the light that was in the closet (closet space became part of the living room) was easily changed to a recessed light to match an existing ceiling light on the same side of the room.