I am not an expert but I would say bigger. The furniture looks like its floating around the rug. I would suggest a rug that reaches that's wider. I had just posted a dilemma about light coloured tiles asking for suggestions for a wall colour. I got some tips from your pics. So thanks! Love the grey and greens.

Yes, it is too small. Personally, I like an area rug anchoring seating to fit under 1/3 of the sofa and extend past it on both ends by 10-15" each side. Then it needs to be big enough that chairs arranged around it can have their front feet on it and all the seats can be 18" from the coffee table if they don't have their own side table for setting cups, drinks. etc. Otherwise, the coffee table is useless in an entertaining situation.