I would look into a lighter blue. Something that will compliment your flooring and match up closely to the curtains. As for decorating, Maybe some industrial sconces, a whitewashed coffee table & TV stand?

move the couch forward to create an entry way - hooks on the wall for coats, small table for a landing zone and a place for shoes. use rugd to further separate the entry from the living room. assuming you have a TV in there too, a couple club chairs and a side table along the outside wall could complete the area in terms of furniture.