Also have a dual purpose room. We did inexpensive white shelving units around two walls, with fabric boxes to stash stuff, (office, and my "crafty" supplies), threw in a few decorative items. Got a tall basket for rolled up mats/foam roller storage, a complementary lower basket to throw in the requisite elastic bands, small hand weights, etc. Decorated walls with pics from our travels, framed with colored mats.

Although, I love soft, pale, barely there yellow, the canary (egg yolk as I call it) yellow is just too garish. I do like the mint green and I'm finding lots of sites that are showing myriad options in décor for it now. I imagine it's one of those "get it while it's hot" colors but it's a beautiful one to me. I've used the hot pink in much smaller doses for my daughter's room when she was little but I doubt I would use it in large quantities. I also deal with blue best in small doses.

Absolutely agree with blueskies60 ! Remove the artwork/bench/plant that's on the left and replace then with either a bookshelf or a tall chest of drawers. Perhaps the plant can be repositioned into the corner on the floor where this troublesome niche is (there seems to be more than enough light there for a plant) and just place something calm and simple in the niche itself - perhaps a Japanese style scroll or pen and ink art work set off with a more rounded object sitting in the left corner of the niche; a gorgeous rock, a lovely candle, a calming statue... If you have (my preference) a chest of timber drawers on the left where the current art work is, you'll break up the symmetry, have more storage and have another surface upon which you can place a changing display of objects. This is the area that I would utilise for a mirror.

practicallity wise with young kids shaggy is going to be a nightmare ..wool is good as warm in Winter..and hypoallergenic.. Harvey Norman have great rug sales sometimes 40% off just keep an eye out for them.. I don't buy wool I just buy what looks nice and is practical.. 2 of my kids have eczema and they find wool rugs rough and itchy..we used to have a wool rug at our old place..so I only buy synthetic now..