Here is the before picture of my living room. Remember this. I found this rug on sale at Lowe's and bought knowing it would fit perfectly in my bedroom but could work in my living room until I could find something better.
Here is the better. It is a wool rug that I found at Costco. It is just the right size. Some designers will tell you that the area rug just needs to be under the front legs to anchor the seating area but I would disagree. It feels so much better to have the chairs actually able to have all four legs on the rug. I also changed out the pillows on the couch to pull the wall color into the room. The rug also has some of the exact wall color within the pattern.
Next...get rid of the antique oak church pew (you can see the corner of it in the lower right hand corner), and get a new ceiling fixture. It's evolving. What other suggestions do you have?