Sorry I disagree with studio M - no rug please & your pillows are fine too. The challenges with this room are mostly traffic flow- too much of it - 3 doorways large window - all which makes furniture placement very tricky. Your comfy looking couches are space hogs - visually and literally- but you can use them to direct traffic and function of this busy space.
Make a focal point for the room by moving the television to where the large sofa now sits. I'd put the large couch beside the window (it looks like the radiator is far enough to the left for this to work) - place the small couch between the doorways the coffee table will sit between both and work to slow the flow, allow for games, puzzles etc. on the table - plus comfy viewing from either couch. You should be left with a nice floor area between the window and archway for other toy play and your beautiful dogs too.

I'd find a rug with the red in your pillows in it to bring some color to the room.

How many people watch tv at one time?

I like studio Ms ideas. Your living room looks a lot like mind. Try to get a lighter rug to brighten things up. That's exactly what I am doing. Also maybe some pillows with bold accents. Good luck

i have three kids under 6, so they tend to take over the living room during the day time, so what ever i do has to be child and pet friendly

im also going to get pillow covers for the pillows, i dont like the color in them, but it came with the set

Three kids under 6 means all three may want to be on the sofa or on the floor to watch tv and play. Measure out the big sofa and see if it will fit between radiator and door, where the loveseat is now. Then swap the sofa and loveseat if sofa fits. The coffee table may be useful where it is if the loveseat goes behind it where the sofa is, or you may want to move it to another room to improve traffic flow, or even next to the loveseat for a while. Sometimes with kids a room arrangement will work fine for a year or two, then it needs a change as kids get bigger.

If you want a rug, try two smaller rugs that are washable and patterned. With pets and kids, machine washable is practical. Avoid cotton- too heavy to wash comfortably in most home washers. Nylon or polyester are practical. Or an indoor out door rug you can hose down outside.