I think a key point with the ottoman is to balance out the massiveness of the couches with something less massive. If you go with an ulphostered, ottoman, I would use something slimmer. A wood table could be nice too. Then, to lessen the dark effect, you could keep your basket of books and add a plant, maybe some candles or a fake book box to hold the remotes. Other questions that come up are how do you use the space? How many people need to sit there? Do the 2 couches offer sufficient seating? If so, I would just remove the chair, then you can bring in dining room chairs on the few occasions you need more seating. If you are truly brave, you could use comfy, upholstered chairs at the head and foot of the dining table and then wood chairs on the sides for an eclectic mix (admittedly, I would be too chicken to do this, but I am a terrible housekeeper). As far as paint colors, how do you want the room to feel? Cozy like an English den? Bright and cheerful? What also comes into it is how much natural light the room receives when you are most likely to be using it. When you re-do the fireplace, I would look at small built-ins next on both sides to put the DVD player on.

OutsidePlaying - thank you!!! I think you're absolutely right - I have dragged in a few random chairs from around the house and the lower backs are the key - I was trying to create cozy with the bigger chairs (they ARE very comfy) however the lower chairs in place now make all the difference - I will make sure whatever chairs I end up with will keep this in mind (I'm also debating benches on each side and lower (!) comfy captain-style chairs on the ends)

We bought some rattan bar stools from Pier 1. My mother bought wicker chairs for her breakfast nook at Pier 1. We were able to sit in them and try them out before we purchased. Your chair above is available at my local Pier 1 for $99, so perhaps you can check with a local store and try it out.

it seems like you have a more modern asthetic with the chandelier and rug, so I would go in a more modern direction with chairs. something that has some openness that lightens up the room