For those who said that you can't move cabinet pulls because of the holes-- When they're painted like these, the holes can be filled with wood putty, sanded smooth and painted and will not show if done carefully. Moving them is definitely an option, but would require work, and of course, the desire to do all that paint touch-up. Re the border: I'm not a fan but if you like it, then keep it up. It reminds me of the 70's.

You love the chair rail, but should you remove it? Hmmm. Will the room really look larger if you do? :) It's more how you use the rail that'll make a difference. If you paint it cerise to contrast with white walls and form a belt around them, it will squeeze them in. If you do the walls and molding in harmonizing shades that blend into each other and to some degree with most of the furniture and curtains, the room will feel a lot more spacious than ripping all detail out could accomplish, and the molding will ad depth and shadowing, part of the layering of interest. Small rooms can be wonderful because they're small. I remember Katharine Graham, a very wealthy woman, saying her ideal size for relaxing and chatting was 15x15 (tiny in her houses). How about looking at that as an asset to develop?

This chair would look great, it's still somewhat formal but has curves instead of boxed corners like your sofa. I also like this rug, sort of terra-cotta and gray. I hope the link works. http://esalerugs.com/terracotta-7x10-new-vintage-area-rug-33131269 scroll down and it shows the rug in a gray toned room. Looks beautiful! eta: DD has rust highleg recliners with a dark brown more casual sofa and it looks great. You don't have room for recliners but the colors work well.

The quality of the sofas you are looking at are but a fraction of those chairs. While I am not partial to wing back chairs, I think they fit the beauty of the room. I would offer $1800-2000 for all 4 chairs (they don’t want to move them), if all are comfortable, which I am sure they are.