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.
Two story apartment at Ocean House in Miami Beach designed by Briggs Edward Solomon and featured in Florida Design's Miami Home & Decor Magazine. Coffee table by BES and sofas by Living Divani at Luminaire.