This is a nice-looking living room with smaller rug. Perhaps the key is to frame the rug with sofas / sofa and armchair combo / sofa and the window. And another trick is to fill up the room so the size doesn't look awkward.
Project by moodern/homify feat. the Cloud sofa from Lema (available at HL!
A Merry Mishap: The difference textiles can make / new rug & sofa cover