How about a light sisal rug (or faux sisal--easier to clean, easier on the toes), edged in black or charcoal? Or a lightly patterned tone on tone rug that picks up some of the gold in the pillow. It's a pretty space.

I like the idea of a sisal rug as well, but something in pale green to compliment all the reddish tones of the wood. Are you going to paint any of the trim (you wouldn't be detracting from the wood wall and floor). I think that would add some of the clean, modern lines that you mentioned.

Another rug idea would be on the other end of the spectrum - white, fluffy, something to sink your feet into - like this rug from Ikea: http://www.ikea.com/us/en/catalog/products/10093942/

Then maybe a linear coffee table, jute baskets for that shelf on the wall.

There's a lot of potential for the space.
All the best!

The rug whatever texture you decide, should be much larger than the space you have marked off. Will you add any other seating to the area? If so, then a larger rug is definitely a must. Try to stay in the off white colors. There is so much wood going on in the room that any more color will become very distracting to the eye. Are you definitely set on those fabrics? Maybe starting with the rug would be a better way to determine color for the room. Play with different color towels on the floor. Its an inexpensive way to choose color for the floor covering. Enjoy the process!

"I like the idea of a sisal rug as well, but something in pale green to compliment all the reddish tones of the wood."

Then consider Seagrass - the fibers are a naturally pale greenish color...
...and you could also have it bound in a green if you wished.

http://www.naturalarearugs.com/

Thanks for all your reply's. I'm leaning toward the white rug idea. Yes I will add a chair in the front corner. I have been debating on the size of the rug.I thought just front legs of sofa and chair would be on rug. I took another picture from the view of the kitchen. THe wall on the left is where the t.v. and media console will be. THe tape on floor is where the console will come to. I thought a walk way to the far door should be left open. Maybe a runner with some color that can be taken off if desired. I may be off base and need to put a 7'x11' rug that just comes to console? It's kind of a weird shaped space in an older home. Not really another place to put the large t.v. THe tongue and groove on tv wall was just put up, also floor board and trim. Dry wall was so bad and we didn't want to redo it. It will darken a little. THought maybe painted floating shelves with webbed black leather bench below on side of console> thanks again for all you time! p.s. The sofa and pillows are being made as I write. Pillows can be changed it needed. Should have bought the rug first! Decorating 101