Creating different "stations" and purposes within the room's set-up will keep readers there (and contentedly occupied) for longer. Even a small-ish room like this has massive versatility.
Creating shelving that encourages grabbing and reading doesn't mean that books can't be stacked varying and interesting ways. Just make sure that it's easy to pull and replace without creating disarray.
Get the lighting right. In the corner of our library we recently added a Pottery Barn floor lamp. By adjusting it as low as possible, those who sit and read have immediate illumination on their material. It changed the dynamics of the whole room, I tell you.
Good overhead, even tract, lighting illuminates the space when the sun goes down and evenly distributes light without the hassle of locating plugs, dealing with cords, and turning on and off several lights.
For dwellings with children, create soft floor space for lounging and looking. Children are more likely to read when they can sprawl. Encourage children (and adults) to enter the library by keeping curiosities that attract a crowd: a wall collection of masks, a few toys or simple art supplies on low shelves, unique attention-grabbing "coffee-table" books like Stiff or an anthology of self-portraits. Once wanderers come into the space, they're often hooked.
It really doesn't take much. Easily-accessible shelving, good lighting, and comfortable seating. The environment itself becomes a teacher when students of all ages are able to take a hint from the intellectual vibe and get excited to pick up what is around them.
Even a more formal setting can be cozy and inviting. Often rooms that are set apart for the library remain off the beaten path of everyday traffic. Create a reason for entering and using the room, whether it be adding a desk or table for homework or art projects, a flatscreen, or afternoon snacks.
The same has got to be at least somewhat true for adults as it is for children: studies have shown that children are more likely to pick up a book and read if the cover is facing out. Here even adults get tempted by simply walking by. If installing specific shelving isn't a desire or option, create spaces around the room for upward-facing stacks of books or magazines. Children's books in a large shallow basket. My mom wanted my 5 younger brothers to read more, and she casually placed science, history, and sports mags around and my brothers suddenly sat around reading more!
Even a line-up in an unexpected area can grab a passerby's attention.
Integrating an abbreviated library into a common area brings the idea of reading and intellectual perusing into the everyday. Even a small line-up or stack by the coffee or tea or toaster can change behavioral reading habits.
A favorite living room of mine for integrating a library with a fireside seating area with a little theater. This kind of setting suggests that these books aren't just for show, but are a part of the dweller's life as is a bathtub or front door.