The most kid and pet friendly couch material is leather. So far our blue leather couch has coped with 18 years of toddlers falling asleep and weeing on it, cat vomit, Easter eggs melting between the cushions, spilt milk, spilt orange juice, spilt red wine, spilt coffee, and muddy dog paws. It just wipes clean. Our white leather chair is just as durable and is now 24 years old and just starting to look grubby. So go with beige or cream if you want. It would be a lovely choice, just make sure it is leather. Black or mid or dark brown would also look lovely with that beautiful rug but I think lighter colours would look fresher. Don't be at all scared to use light coloured leather.

Mate, start bidding, I would if I had the space! http://www.ebay.com.au/itm/VINTAGE-RARE-SMITH-AND-CO-CHESTERFIELD-TAN-CIGAR-2-SEAT-SOFA-LOUNGE-COUCH-SUITE/282194290880?_trksid=p2141725.c100338.m3726&_trkparms=aid%3D222007%26algo%3DSIC.MBE%26ao%3D1%26asc%3D20150313114020%26meid%3D9ae17f7c19224fd7b11591d4fb71dce7%26pid%3D100338%26rk%3D10%26rkt%3D22%26sd%3D262634019312

I would centre the artwork to the wall, therefore Airconditioning unit. The lounges can be changed in years to come, but the aircon unit will always be there.

If your 'outdoor' table is still there , pick it up and move it up under the TV . Put a placemat and a couple of vases on it -- I personally think it would work better under the TV , back where you have it its taking up useful space ( its even a shin biting monster haha ) that doesn't achieve much IMO .