This is a nice-looking living room with smaller rug. Perhaps the key is to frame the rug with sofas / sofa and armchair combo / sofa and the window. And another trick is to fill up the room so the size doesn't look awkward.
NOTE:::love the tile idea for anywhereWarm modern bathroom. Love the tile, love the mirror wall. Not sure I ever loved a mirror wall before, but this makes so much sense, especially if you have a really small bathroom.