Thank you for your comments and your sympathies, it is a difficult room to work with. But there is a light at the end of the tunnel, behind the far wall is an enclosed garage which is used as a storage space and we are in the process of getting a shed built to move everything out of there and extend out, so the room will become more of a rectangle rather than a square and everything should fit into place nicely! We have tried different variations of furniture placement which did look nicer but weren't practical for the age of our kids, like Lego at our feet when sitting on the couch etc. I think we will leave the furniture as it is for now, however I love some of your ideas. Good point about the shag, that's gone, I will have a look for a low pile wool rug. choices flooring have some nice styles I like. I hadn't thought of incorporating a blue or terracotta toned rug, that could work well to better hide stains. I love the idea of artwork, what would you suggest, something abstract? Incorporating colours from the room or more a statement piece? I also love the idea of adding more circular elements and also a lamp to add height. Do you have any suggestions for either one? I'm also concerned the room is a bit impersonal, do you agree? Please keep the ideas coming.

I can really recommend the Danish brand "Rug Solid, which have rugs made totally out of recycled materials. This is a photo from our living room, where we have a recycled cotton rug from "Rug Solid". http://rugsolid.dk/en/

I really like the rug and think it goes fine with furniture. Love your dining table and chairs too. Agree not to have the patterned blue throw. It seems to me the furniture placement around the rug is a bit off. i.e. There's something in each of the 4 corners and then a big circle in the middle. I am by no means an expert, so feel free to take my comment with a grain of salt.

I've seen Martha Stewart add rows of silicon with the applicator gun directly to the rear of the rug to make non stick. Wouldn't be suitable for heritage rugs.