I would get a bigger rug, curtains from the ceiling to the floor.

You need a longer tv stand.

Yes, a much larger rug is needed as well as a much larger TV stand. I cannot comment about photos because I much prefer art and I am not a fan of random shelves.

I would get matching curtains and make sure that there are enough panels so that they are full even when closed. Be sure to have enough lamps so that you never have to turn on the overhead fixture ( they are very harsh).

There is just too much to say about this space, so I'm only going to focus on a few high level issues. You need a larger/longer console to put your TV on. That is how you hide the wires. Then pull your love seat into the seating configuration along with the couch and accent chair. Get a larger area rug. Remove the aqua colored drapery panels. Start there.

The drapery in the living and dining areas do not have to match exactly but should relate to one another color-wise since you have an open floor concept.

I recommend a Roman shade for the window to the right of the TV and drapery made of the same fabric for the window behind the loveseat. Here's an example of how the two treatments can coexist together harmoniously:

Enviable Designs Inc. · More Info

I'd like to suggest you scoot the love seat up so that it joins the seating arrangement? It looks a little lonely back there all by itself.

A longer TV console will camouflage the cords and a floor lamp near the TV window will help with the shadows.

Because you've got pattern on your chair, I think I'd opt for a relatively plain area rug. One with tone on tone pattern or texture in ivory might be nice. Or something like the bordered one below.

Many good suggestions above, just want to add that a tall plant in the empty corner by the window would be great. I'm afraid that the patterned chair ties you into a certain rather bland color scheme. Can you move it to another room? If yes, I would then find a quite large and colorful rug to wake up all the beige and gray blandness. An Oriental rug or transitional Oriental in lively colors would do this room a world of good. Try rugsUSA and esale.rugs for ideas. When you've found a rug, choose your pillows based on the colors in the rug. With that and a much longer TV console your room is going to look smashing and alive. For curtains I would choose a neutral off-white or light beige color with a self pattern or plain heavier material. They'll provide softness without influencing your color scheme or calling too much attention to themselves. Frankly, family pictures in the living room just don't make for good decor, unless they're large, black and white and in simple frames. Look on e-bay for original art and try to find something that speaks to you. There may be types of art that do touch your soul which you haven't investigated before. Art, books and plants make a home come alive. Please don't put towers in the room for pictures or anything else. They are a trend that is over with although you'll still find them because most places that sell furniture are five to ten years behind. Generally speaking trends are good things to stay away from. You want a classic look in your basic furniture, livened up by items that you love to give your rooms the stamp of your personality.

I have to say that your coffee table is a bit lacking in personality and good looks. Would you like to try a glass coffee table instead? Perhaps a more interesting and colorful lamp would also be a consideration for you.

That's lovely, KatD. And you can totally do that! Take note that there is no loveseat in your inspiration picture. I think a sofa, two matching chairs and an accent chair would be perfect for this room.