I don't know what your budget is, but if you've got a healthy one, I'd go for a Maxwell Sofa from Restoration Hardware in "cigar" or "chestnut." Your space could accommodate a big sectional (instead the sofa and love seat) I like the clean look of a track arm and I think it would look great in your space. When you're ready, you might want to a larger area rug, too with some deeper colors. I'm partial to a more traditional look with an oriental area rug, but no matter what you choose, it will warm up your space. Then... cmon back and we can talk about art. :)

I think white or cream might rather wash the room out. You could consider tan to warm it up. Otherwise, and I rarely think this, the dark brown does work for this room.

I agree about the art.