Scandinavian furniture stores (starting with Ikea but going all the way up the scale in quality and/or price) tend to have smaller scale furniture. If you have an older home with smaller rooms, or just short legs, they're worth looking at.

(I finally realized why I can't find a good replacement for my 1940s wing chair--it's LOW! The spouse can barely get out of it holding a sleeping child because it's so low. I find it perfect at my short height...you're not going to find a good vintage sectional of course, and if you did it'd probably be gross.)

Here is the Flexsteel Jennings group. They also have 2 other styles, one very modern and another, not on site that is like this one but the arms are bigger rolls.

Here is a link that might be useful: flexsteel sectional

Good luck with your hunt. I just spent months looking for "apartment-sized" couches, because I too ended up with a very cozy [small] family room.
In order to make my space work, I had to have couches no deeper than 34". Looked into custom, shopped all the second-hand outlets looking for something to reupholster, even looked into having appropriate furniture shipped from The East Coast.
I found something absolutely perfect at World Market--on my birthday AND on sale. I have sent you an e-mail with pictures.

My intended e-mail bounced back. If you want me to resend, click my name & e-mail me.

I have a small den, with similar comfort issues you describe. (My husband is tall and I am not.) The last sofa we bought for our small room is the most comfortable of any I've ever owned; it's a two cushion leather couch with attached back pillows and our preferred seating. I've had the cushions replaced once in 9 years, and it's still going strong. The company is Leathercraft...see what you think.

Here is a link that might be useful: Leathercraft Furniture

I knew I'd get some help here! Tonight I will set aside some time to go to the websites you've all given me...and report back. Thanks.

debsan--it appears that you do not have your email enabled on GW because when I go to your page it does not offer me the "Send Email" link that is offered when that is enabled. I think you probably got a message from my spam service and if you answer it, it will then let your email through but I'll see if I can go on and find it and let it through also.

We bought a Natuzzi. We wanted a big small sectional - now how does that sound? We have a fairly large space but wanted a leather sectional that we could sit on with back touching the cushons AND feet touching the floor. I am not a tiny person (5'8") but most of the nice sectionals I looked at required me to have my feet up if I wanted my back supported.

We have been really happy with our Natuzzi sectional, we bought an extra piece, to get the length we wanted.

Check out the link below. I also needed a small sectional for a small den/media room. The Clayton Marcus Model 3814 was perfect for us!

Here is a link that might be useful: Clayton Marcus Model 3814

Here's a pic of our W. Schillig sectional (model is called Arabesque):

We flip-flopped the DR with the LR after we reno'd the kitchen, so the couch is in the space formerly known as the DR (the space or room adj to the now opened-up kitchen).

I have a family room that is off the kitchen too.
MY DH loves our Natuzzi. They make many different styles,
colors and sizes. I love being able to read near my
kitchen. I agree a sofa that you sink into doesn't
work when you are reading a cook book with something
on the stove.

Not knowing your style, colors etc.. I found a few
sofas that are apartment size. These tend
to be smaller. Rowe is normally large but they
do have a few that are small. How about Baers sectional?
Bergstorm is a furniture that sells small cozy sofas?

Here are some pictures.
~boxerpups

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I've had my eye on this eBay item for a while, even though it isn't really my style -- it's small in scale, and would be amazing reupholstered! ;-)

Here is a link that might be useful: French Regency sectional

Circuspeanut: I love your taste!

We have had a Flexsteel, Stanton and now a Mastercraft. Our favorite has been the Flexsteel, but the Mastercraft is pretty nice, too. We've only had it a couple weeks, so hard to tell.

We are not tall, either.