I like the colors, but not the pattern, especially against the tiled floor and geometric lines of your table and chairs. What about this "Hamptons" rug from Home Decorators catalog? It picks up the colors and rectangles with a less flamboyant pattern. And actually, for what it's worth, I have both synthetic and wool rugs, either machine or hand-made, and wool is hands-down the easiest to clean and maintain. So don't be afraid of spending on a wool rug, if you love it it will last longer than your lifetime and still look beautiful. Here is a link that might be useful: Hamptons Area Rug

Delta: I feel for you, been there, done that. First off, regarding the allergies, has your allergist ever retested you and adjusted your mix? Not just the annual remix, but adjusted the allergens and potency? That is finally what cured me after about 8 years on shots. There were some allergens that I no longer reacted to and those he was able to eliminate from my mix. With those removed, he was able to double the potency of the remaining allergens. Then after 1-2 years of the adjusted mix, I went on long vacation so had to stop shots and just never found the need to go back on again. I know what you mean about tradeoffs in decor vs. health, but your bedroom is where you spend 1/3 of your life as my allergist always would remind me. I think a low pile rug like FLOR or a sumak plus your DH using a yoga mat on top of that since it won't be very plush would seem a good compromise. Did you see the sumak rug I linked? There was a recent thread on sumaks here with lots of pics. I'm actually going to see if that rug is in a smaller size for my foyer since I need a low pile there for door clearance. Somehow it seems easier to pick a rug for someone else. My family room I am still undecided on....

I think it will probably work to define your seating area. I wouldn't worry about the portion of the wood floor that's exposed - just leave it bare. You could possibly use a slightly larger rug in this space (10x14 or so - it might need to be placed so that more of it is underneath your sofa instead of exactly centered, just depending on how it looks) but since you really like the rug you posted, if I were you I'd keep it.

I am totally willing to go 6x9, that particular rug is from West Elm and like I said it’s already my third rug. I would be happy to take any suggestions. I want to be under $500. I am in NYC so I have to do everything online. Also as I had mentioned, the pic is misleading b/c it is a wide angle iPhone pic so everything looks squeezed in. Please believe when I say 9ft width is the widest I can go. Thanks everyone for your help. Please list any suggestions here. I think some navy blue in the rug could work.