This is a design dilemma, not a poll. I'm just saying that first so that other Houzzers can see what it is. May I ask first why you want to replace your furniture? What is the reason for the change of look? What feel are you hoping for? That will help us to help you.

Maybe try a fainting sofa to upgrade the room? It'll give the room some flavor and room for mixing up decorations and themes. Then maybe a Chaise lounge in the corner?

I am changing out the furniture because the existing furniture just feels tired to me and I am bored with it. Looking for a more comfortable, yet pretty and fresh look.
How about these two?....

And this sofa. Sorry, did not intend to post 2 pictures of the area rug.

Both gorgeous -- and I like the coral (?) of your lamp as an accent colour with that. Are you wanting new chairs too? My first impression of what I'd like to change was the the curtains, which look dark and heavy. With these I think cream curtains would look really fresh. But I've got the feeling, contrarywise, that you could do with a more substantial coffee table.

How does this combination strike you?

http://www.overstock.com/Home-Garden/Coffee-Sofa-End-Tables/2030/subcat.html

I am planning to eliminate the glass coffee table all together and maybe just utilize the ottoman, by placing a tray on top.

Here is my existing ottoman.

That's nice, but I think with the sofa and the rug you post it all might be too much of a banana cream muchness? Mind you, that's not a decision you would have to make up front -- use it and see if you like it. If you don't, you could get another coffee table.

Night time here. I hope someone else chimes in with inspiration. (I'm so intrigued by your art -- would love to see it properly -- but not if you don't want to show it.)

You could go for a bright look like a warm orange, it would look great, welcoming and warm.

Some examples from Houzz:



http://www.houzz.com/photos/orange-sofa-sets-/p/48

Rina, the art is by Kris Crollard, she has an Etsy site.

Thanks, Sue. What a peaceful image.

Love the art above...