This is a nice-looking living room with smaller rug. Perhaps the key is to frame the rug with sofas / sofa and armchair combo / sofa and the window. And another trick is to fill up the room so the size doesn't look awkward.
Light in the dark: Danish home style - in pictures
These doors are amazing. Homes: Danish: the living room with a coffee table and bookshelves in the background - Bookshelves, throws, a muted rug and the Hans Wegner coffee table. The white standing lamp is from Artemide.