I think that is the only option for furniture placement. I love the rug. I would place the storage ottoman in front of the sofa to use a coffee table too. Photos would be nice if framed and a different placement. Maybe use each one as the center of a collage of photos on each side of the TV.

You could add one swivel chair. On the left side of the TV facing the sofa for another guest with easy viewing by turning the chair.