I am planning to add scatter cushions and think if I do a pair of larger ones for each end so they go over the arms to creat height at each end, and a couple of smaller ones, I want to bring some colour in too. I do like the idea of a larger side light at either end to, Switching the sofas is going to be my final fix if all else fails!!

There is nothing worse than ceiling-mounted lights--harsh shadows, flat lighting. They are strictly for utility. I would put a large-ish, shallow cylindrical shade on them and put nothing more than a 15-watt bulb in them. Use them strictly for lighting your way as you walk through the room. I agree with Vincent; the chair in the corner doesn't fit at all, nor does the one under the A/C unit (put that one with its mate behind the love seat). And the curtains look smooshed. I think the problem with the bookcases is that they are uninteresting. Did you buy books-by-the-yard? What are all those identical books? They are visually uninteresting. I'd get rid of some of them and get some colorful ceramics/glass/photos. The room is absolutely overwhelmed with furniture. It needs one less love seat. Do you really need all of them? Pushing them against the walls/curtains so tightly just visually emphasizes the fact that there is too much furniture. I don't think a mirror above the fireplace will work. When people are sitting down (which is most of the time), all they will see is a reflection of the ceiling--the plain, white ceiling. Get some real art in there with some color.

I would wait for the rug, until you have the shutters up and your furniture placed..it may take on a character of its own and you'll want to compliment. My first thought though was to coordinate with your kitchen and incorporate some black, with a black/beige stripped rug, which would be fun with the wallpaper and perhaps paint your chairs black, add the shutters and you could paint the window trim black and add a large black chandelier.

Temple and Webster have some great ones. So do eBay and Gumtree.