The Birds are A bit too high, they need to be lowered. Perhaps you could remove the floor lamp, add a table lamp to the end table. Then add a narrow console table to that end with the birds lowered. A fake fireplace would feel very cramped in there

I think a larger rug would look better.

Definitely formal, actually stiff. Soften up all the square edges with some curves. If the birds are 2 pieces lower one of them. Lower the painting to 5" above sofa. Higher end tables, should be height of sofa arm so a drink or book can be placed without reaching down. I'm not keen on the rug placement, from the angle of the picture it's hard to tell if it's centered between furniture or not. Round pillows rather than rectangle and a throw tossed over the sofa will add softness.