Making the twin beds into couches during the day is a great idea. Does your plywood slip under the beds on each side with perhaps a set of legs for support when extended? Would two futons work for full coverage and lounge conversion? The seat and back cushions are also ideal. If you could put a track under the rear window you could slide off the fold-down table from the front and would have a rear dinette and a front bedroom!
Was it difficult to remove the night stand? How was it attached?
I had thought if that night stand was on a swing bar it could have been pulled forward and swung to the floor for night conversion.
Would love to see pictures of your final set up.
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I don't understand King Size. I spend most of my time trying to ensure my partner can't get more than an arm's reach away. 
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I would think that all those bodies in bed (2 + 3 + 2) would be a challenge to partnering.
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