Love your style and you've got some beautiful furniture there! A deep aubergine purple velvet on your wingbacks would look stunning. I'd tend to stick to purples in this area to keep it classy. Also, a dark purple would be more practical with kids than a cream. I'd keep the chairs you've got, unless they are really wobbly. Get someone to check them out and give you a quote for repairs and then you'll have a price to work against to see if you can get cheaper. OnePlan is right on the style and yet I don't think they look out of place in the room. I also like the idea of bench seats or if you wanted something really different, you could get a church pew?! I don't think the room has too much dark furniture as it is a large light area. Keep us posted with pics/samples of possible fabrics you find. Also, check out fabric outlet places.

Is this where you are looking? http://www.houzz.com.au/user/sarsfieldbrooke Looks like they are in NZ - and you can use the Contact Me button to ask a question...

Awesome upholstering job! The cobalt blue really compliments the peacock print nicely, whilst also making the chairs more fun and youthful

Looks good! Never seen distressed wood before.