I would be inclined to go with an unobtrusive light since it's the living room and anything too dramatic or a hanging pendant may interfere with your peripheral vision (or otherwise be an annoyance) when you're watching TV, etc. Also, being so near the sliding door, the wind may cause a hanging pendant to swing quite a bit which will cause the lighting to be constantly shifting and changing which I would personally find annoying. I'd go with something simple and subtle, but look at getting a tall standing lamp for the corner near the sofa (or possibly at the other end of the floating TV cabinet). In terms of warming up the apartment, I think you need something on the bare walls. A smaller picture above the floating TV cabinet will help to take the focus off your TV. A larger art work behind the sofa will also help to add some colour and personality, especially if it picks up some hues from your sofa. If you don't like the little Buddha statue, I would look at adding one or two other items that you do like (perhaps picking up colours from the wall art) and making a little vignette. A couple of colourful cushions and a storage solution for the wires, games console, etc on the floor would also help to bring everything together. Something as simple as a woven basket under the floating TV cabinet might help to keep the games console, etc in place unless it is in use.

Congratulations on your new home. I think you have been very sensible to live in it for a year before starting your decorating, it has given you time to consider the lighting and aspect of each room in all seasons as well as time to evaluate how you want to live in your home and exactly what you need. The lounge does look very big and bulky and will definitely dominate the room, so I would keep to the lighter colour. Don't worry about the kids and dirt - as Kookykaren said, leather cleans easily - sharp objects and textas are your bigger worry regardless of what colour you choose. Laying newspaper on the floor to the size of the lounge is another way of checking how it will look as it gives you a better indication of bulk than tape. I would keep your ottoman simple (one with storage is an excellent idea with the children), just a tone on tone fabric or a pattern using the colours in the rug on the floor of the photo of the lounge. I don't think you have room for too large an ottoman but I would have a square one made the same height as the lounge so when just you and DH are watching TV you can push it against the other end of the lounge and both have a chaise. You can then bring some colour with art work or some patterned cushions on the lounges.

Love those ideas Julie, I have done a very rough Sketch, and I mean rough. I would run everything along the TV wall ie: TV & drinks cabinet. Add a lamp of your choice. Dress the end wall with art, some colourful cushions etc. A lovely softer timber coffee table would also add to the space. Love the sofa we had one in a unit and the curtains are perfect, cheersSorry about the changes to my first post Julie not sure what happened when I tried to add coffee tables/foot stools, these are great in restricted spaces with no sharp corners

It's just that the carpet doesn't sit nicely with the wall colour. You need some accent colour in there so your chair is fine but I would add or replace some of the cushions on the lounge. The artwork is over your head so bring that down to eye level and I would look for a new colour for the wall as that is the easiest to change. Hopefully you don't live in a too warm climate as the carpet is a warm colour and the toning the wall will add to the warmth. I realise that grey is very popular at present so my other suggestion would be a huge grey mat to cover a much larger part of the existing carpet.