It's the right color but too tall for anyone who wants to put down a drink, phone, reach for something. Can you find a round nesting coffee table in a similar finish or contrasting color about the same height as the sofa seats and slightly smaller diameter?

Modern Round Wood Rotating Tray Coffee Table With Storage, Natural · More Info

Rustic Reflections Metal Wood and Glass Coffee Tables, 2-Piece Set · More Info

Next up would be great art work in the room, this palette

Large Wall Art Triptych Set Dining Room Decor White Huge Canvas Print, 30x30 Eac · More Info

That was my thought. It is about 1in taller than the sofa seat, which isn’t ideal. Art is next after the coffee table!

Do you think a smaller diameter is necessary?

I like it and although the height is not correct, it doesn't bother me. Once you have art and other things on the wall it will no longer be the focal point and you won't notice it much.

The chairs and sofa look very cramped together. Can you move them apart from each other somewhat? Is there room to put tiny drink table on either side of the chairs and have the coffee table serve just the sofa?

There is room to spread out. I was trying to move the pieces close to the table and on the rug, which is too small for the space. I could definitely add small drink tables and want to add an end table on the right of the sofa.
I think a low rectangular table would fit the space better.