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.
Eclectic gallery wall of vintage prints and modern art in a contemporary neutral living room. I love the large marble top cocktail table and the leather side chair - Unique Living Room Decor & Decorating Ideas