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.
IKEA - EKENÄSET, Fåtölj Just wish the tissue were different (though that should be simple enough to resolve), and that it was available near me! Getting this would involve a trip to Stockholm, making it a very expensive Ikea chair.