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.

Go with your plan to feature colour Wall A and mount mirror on Wall A and place beachy art work on Wall B. My suggestion is to maybe consider using a paint colour for the featured wall that is tonally similar to paint on Wall B and not too dark so as to give room depth but not close it in with a dark heavy contrasting shade. Offsetting the hanging of the mirror closer (to the plant) could also add interest (and work with the shorter end of the sofa). Often going with you intuition is the best advice!!!

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.

Hi jen2608, the lounges will work. And the buffets. Get a rug that will be big enough to fit under the front of your lounges. With my quick sketch I would suggest a 2000mm x 2300mm size. Or at least a 1600 x 2300. Rugs are personal things. But with the beautiful deep wood furniture that you have, I would bring some similar tones in with the rug. But with a splash of colour to match your new lounges.