Agree with above and I'd get rid of the bookcase. It's too low for the space. Have tall bookcases built in to the ceiling and also a library ladder to reach the ones on top. I think you can use 2 sofas and perhaps 2 chairs as well, if they're the right ones. That sofa MUST be pulled away from that wall - looks totally wrong there and blocks the kitchen entrance.

I would recommend either a solid color fabric, or a very soft, subtle pattern (almost tone on tone). The fabric on the chair seats and the chair backs already have quite a bit of detail, and the wood shutters bring in some texture as well, so I think your drapes should create a simple but elegant backdrop. My favorite look for drapes are ones that are fairly close to the wall color, (could be a tone or two lighter or darker) and that are hung from as close to the ceiling as possible, ending just above the floor (floor length, but not puddled). If you have enough room on both sides of your windows, extend the rod past the width of the windows by about 10-12", so that when the drapes are open, they can hang straight down with the inner edge just meeting the window, and not actually covering it. I personally love linen drapes, but if you want a little more bling, consider an edging like a Greek key in gold, or a silk drape that has some sheen). Double or triple the panels on each side, for a full look. Here are a few looks to consider. Going with a higher contrast drape, like a blue or green from your chair fabric or art, could look quite good too, but I'd still stick with a more solid color look. Please keep us updated with what you decide to do. :-)

uh oh, I'll try to find them again! might be later or tomorrow, though. eta: Okay, I took a minute to look for the large one. I was courtesy shopping last night and didn't know your size or budget, so just tried to find something that I thought might work with your furniture and had some red, but would be bright in your space...a long explanation for why this is likely too expensive :-) But if you like the style, search for isfahan persian rug. They have many. http://esalerugs.com/red-10x13-isfahan-persian-rug-110910227 eta: here's the runner http://esalerugs.com/red-6-ft-runner-liliyan-persian-rug-22353470

When a rug works with your pillows and ottoman it usually doesn't work with your draperies which are more burgundy or wine than red. You might want to change the draperies. All of these rugs are from RugsUSA.com and range from $150 to $299. The light from your fan light is really a terrible quality. I would advise you to always use the lamps instead.This plain red rug doesn't work for the room IMO.