I like your paint color, so unless the walls are really banged up (which they do not appear to be), then I wouldn't bother. I would replace the drapes with some nice solids, hung higher on better rods.

Agree on rug 100%. Although since your taste seems quite traditional, I'd either go with a solid or tone-on-tone or a lovey Oriental - maybe one with tan, beige & muted turquoise? I'd put rugs in both the living & diningh & make sure that they are large enough. Suggest getting rid of the throw pillows that match the couch - they make it a little dated. Pick throws that use colors from the rugor if you go with a neutra rug, get some contrasting pillows and throw in some accessories that also use that color in the hutch and on the coffee table.

Also I agree on painting or replacing coffee table. Please, replace the lost-looking teaset with some nice coffee table books or a large pottery piece or interesting tray.

I suggest moving the larger couch directly across from the hutch & positioning the loveseat with it's back to the dining area. If budget allows, add a couple of wooden-legged chairs with backs to the entranceway. A round side table draped in a contrasting fabric beside one of the couches would add some more warmth to this space, as would a couple of plants - maybe palms.