Declaration - I am a rug business owner. The pros for having a rug - subfloor protection, noise suppression and atmosphere outweigh the cons - scratched floors (we all have a friend who comes for dinner and tips on their chair) noise (my kids constantly scrape the chairs) and cold bare atmosphere. Rugs complete rooms. Maybe the issue with young kids who are messy eaters could be the only reason you hold back. The issue relating to timber fading is another matter - timber floors darken with UV exposure, so your rug should always be moved around to make sure the fade lines are not obvious. Even if it just 10cm here and there to mix up the exposed area.

You need to choose a colour that pleases you but the inside wall of that alcove does lend itself to a feature. If you want more than just paint colour there are paintable wallpapers that add an embossed look to a wall and you paint over that. Check out Bunnings.

I am coming in very late to this discussion. But is there enough room in your space to move the furniture like this? I have moved your wooden coffee table where the couch is, and moved the cabinet so it is not the first thing you see as you enter. Moving the grey side tables to form one “modular” table creates a uniform look that doesn’t sacrifice functionality. The marble side table would then be used next to the other couch (as the cabinet is where it used to be) I would also take up the whole space between the aircon and the floor to hang your ‘family’ picture frames. The gorgeous plant is then placed on top of the coffee table to become the hero in the space. I noticed you used a grey soft looking throw blanket on the couch to the right. Is it possible to get matching versions of this to cover the sofa against the wall for the dogs? The texture and colour of the sheets you are currently using is what disconnects your lovely couch from the rest of the space. Regardless of what artworks you choose to use for above the couch, having a darker frame will help to ground them in the space. The white frames are getting lost against the white brick wall at the moment. You have great taste in furniture, it seems to be editing the layout of the space that is not quite working in your zone. Hope this helps!

What a great space, you have done a terrific job, love your colour scheme, black fan for sure, I would go a more square light and these won’t date or restrict your styling, a concrete table could add an industrial look and be easy seating for the family, add a gorgeous sofa that you can relax on, some beautiful planters and lush plants, bliss.