I think the rug size is okay. I would just put the sofa legs on top of the rug instead of it dead in the center of the space.

I don't think the rug size is bad, either. Since you don't want to sit your tv console on the rug, I prefer the couch not on the rug, either. I'm probably breaking some rule there... :O)

The pictures could be lowered a few inches. Also, the lamp/table on the far side of the sofa look really jammed in that corner. A thin floor lamp would work better.

The rug's size isn't all that bad but it doesn't add much. One with more color might be more interesting. Then add a few pillows to pick up new colors.