I currently have my two birds in a bird room. They are still in their cages when I am gone as they would eat woodwork and occasionally get into fights if left alone. I used to have all of my birds in the living room.
Pros of bird room - can contain the mess a little easier, one more barrier to them accidentally getting outside if someone is lax with opening outside doors, they get better sleep, entire environment can be set up for them
Cons of bird room - I have to make more of an effort to involve them in things. When I was in a smaller house and they were in the living room, they could see everything that was going on. Now, it's easy to have a snack without offering them a bite. I have stands that I bring them to in order to involve them more, but one of my birds prefers to be in sight of his cage at all times, so sometimes I wind up reading or spending time in the bird room to keep them company instead of getting chores done around the house