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Add table runner or centerpiece (not fake flowers), lower the chandelier, add a rug under table & chairs, place chairs at head and foot of table (two on each long side, one at head, one at foot), install adult art on walls (not porn, but more adult subject), remove non-dining room stuff (children's kindergarten).

Which of the two rug family should go with this?

It still looks like a playroom. If you don't want it to be, remove the kid's art & ALL the playthings. Is this room originally supposed to be a dining room? I can't tell by the photos you sent. What is that room just behind the small wall with the toy shelves? I'm with your husband here. The table & chairs do look cold & unwelcoming. In order to get help on this site, you'll need to offer more details...room dimensions, style you are striving for & perhaps some inspiration photos, budget, etc. I'd start with investing in new furniture appropriately sized for the room & definitely a new light fixture.

Thanks for your Samondragon for your input.
I will clean up the room and get back here with more detailed post.

Children and rugs, particularly light colored rugs, are a bad combination in a dining room. The chairs do look comfortable, if a bit conference room-esque. Can you return them? The furniture is heavy for the size of your room.

How would you like your dining room to feel? Elegant? Homey? Dramatic? That will guide your choices. You could paint the walls a less neutral color, add wallpaper, add art or mirrors - many options.

You only have one actual room in your ideabook and your note says you like the wall color, but I'm guessing maybe you like everything about this room?

Dining Room · More Info

That is a really narrow room, decreasing options for furnishings. The square corners on the table and the types of chairs, especially the chair legs, do give off a bit of a "conference room" vibe. Your window treatment, however, can affect the vibe of the room.

You could soften the "business" look a bit with your choice of drape fabric. Use a double rod -- wall to wall flat white one -- that inserts into a rod pocket to be totally hidden. On the outer rod, add a panel of drapes beside each window, covering only the side of the window frame and wall. Add a valance between the panels to finish covering the rod. Then add sheers to the interior window.

Would not add a rug in a dining room with small children. On that, I agree with

latifolia.

@Groveraxle thanks for giving me little hope here. As I want to try to work with these chairs, before going with last resort to return them.
Is there an app where you can design with given furniture ?

Navreetbassi, I just use Photoshop. I believe you can do sketches in the Houzz app, but I don't know how it works. Also some of the rug websites will insert rugs in your room and you can paint your room using online tools at some of the paint websites like Sherwin-Williams.