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.
suitcase halves as shelves! i have not seen them used this way before (usually the suitcases are cut in half horizontally while closed--these are halved by removing the hinges, which keeps the structure intact).