You need a beautiful painting or print for the wall behind the couch.

There is an opening to the dining room to the right

What's your interior style? Classic contemporary - set of black frames with black and white photos and large chandelier hanging low. You mentioned rustic - is it more urban or traditional or may be industrial. Wall art and type of chandelier will be featuring your style. So what is it to give you more details and example?

It's impossible to say without 2-3 more photographs of the rest of the room and adjoining rooms.

You might invest in a large piece of fabric art--something unique.

I was debating on large mirror over the sofa or art. If art one large piece or collage? This is the first room you see when you enter the house so I want it to beautiful.
Across from the sofa there is a wall that I will put a tall bookcase where I can have accessories, pictures, etc.

View from hallway

A mirror (or several) might be nice...

View from front of living room by the large window

View from the front living looking through to dining room

I would say my style is more transitional. I do love pieces that have an elegant yet vintage type feel. One of my fav pieces in this room is this metal mirror that looks like ceiling tiles.

Whether you do a mirror or one large hanging or an arrangement of a number of framed pieces, the important thing is that the scale of the piece(s) is appropriate--it's a large wall! Further, if you do a large number of framed pieces, the upper ones have to be easily visible from eye-level--prints that are composed of bold strokes and so forth.

Thank you for the extra photos. You have some beautiful pieces and at least a couple mirrors already. Would you consider moving the large square mirror from the dining room to the sofa? It would reflect all that light coming in from the window and beam all the way to the dining room. Then find a beautiful painting for the dining room. Otherwise, get a great painting in grays, browns, or black and white with an abstract moody feel for over the sofa.

This is beautiful art, has a shimmery quality and is great size.

http://www.pier1.com/Shimmer-Trees-Art---Bronze/2731916,default,pd.html?cgid=art-neutral-colors#icid=cat_home_decor-subcat_mirrors_wall_decor-subcat_wall_art-banner_neutral_colors&start=1

http://www.pier1.com/Amber-Mosaic-Floor-Lamp/2736934,default,pd.html?cgid=floor_lamps#nav=top&start=1

I have considered moving the dining room mirror over the couch instead and replace dining room with a print/art of some sort but not sure that the mirror is large enough. I am not opposed to moving the mirror upstairs and buying a very large mirror for over the sofa.
I don't want to I corporate any purple or gold tones as I currently have silvers and want to incorporate more navy.

This is the colour palette. Going to paint the walls revere pewter by Benjamin Moore.
I won't incorporate any purple or golden tones. The lamp in the room is not staying.

Here a few more rug options with you palette:

Your home looks very nice but needs accent colours. Definitely go for large piece of art and add cushions with matching colour.