The room is awesome! I would just hang your artwork low. I might also move the poufs (or one of the poufs) to different locations that aren't symmetrical. For example, one pouf in front of the sofa and one where it currently is. For lighting, I would purchase a floor lamp for the corner to the right of the piano. Gira Floor Lamp You could also hang some plants in the left corner. Metal Planter

I can see your dilemma first. What a beautiful room! Seems to be more of a seating area than a family room, correct? And yes, unfortunately, the size of the furniture is too big for that space. Let's fix that! Put the rug back, lol. The size you had seems appropriate. Without it, it looks like your furniture is floating, or the movers just plopped it down. Furniture placement needs rugs to help delineate the space. You Should only need the front of the legs( of all furniture touching the carpet). Try layering a more modern/ or your style of rug on top of it, and this will give you some inspiration for your style and the rest of the decor you want to put into making it less formal- which I think is what you're saying. Move the piano in front of the windows; it is a beautiful piece and needs a focal point, not tucked away on a wall. Add one more picture below it, use one of the chairs on one side(maybe the side closer to fireplace- add a floor lamp and a small table. Add some greenery next to the piano/ closer to the entrance- something tall- you will have to play with this since I don’t have a floor plan and the size of your furniture. The other chair has to go from your grouping. Sorry. You can also try moving it to where the piano was with another bit of table. You need to free up some room. Too many big pieces, all pushed together. Add window treatments to the window- something off-white and make sure they kiss the floor. I would almost paint your casing black (only those two where the piano will hopefully go). This would tie back into the piano and make it much more architectural. Add a more modern mirror to your fireplace Here is some inspiration, don’t mind my sharpie drawing. Adding more accessories like / throws/ pillows/vases that are more your style will make it look less formal. Right now, it’s giving me some library vibes. My apologies for any grammatical errors, Typing, and brainstorming all at once. Haha I hope this helps!

Photos sometimes aren’t showing up today on Houzz. Hopefully it is a temporary glitch and either they will appear tomorrow, or people might have to post them again.

I think this rug could work well for you, with your Coastal vibe - plus the tile. This rug has some light blues in the color - but the design of the rug comes across as a neutral, overall - and is very versatile. Doesn’t lock you into any particular color scheme. And it is casual, yet has a certain understated elegance, I think. You can dress it up or dress it down. I tried to get a visual of the rug on your actual tile, but the visual is not doing the rug justice; although hopefully might give you a bit of an idea of how it works with the tile. https://www.rugs-direct.com/Details/ChrisLovesJuliaxLoloi-Chris-CHR01/146463/235300