i would say, choose a theme just for that space and work around it! for example: maybe "asian" theme! paint the back wall RED or ORANGE, have a piece of buddha statue on the top most rack, you can use one shelve to just hold books with some decorative book ends, and instead of the chair, you can use the asian trunck boxes (if you google for asian trunks, you can see what i am talking about! - look for square boxes), this way, you can also tuck those boxes under the desk/shelf when not in use and the trunk could also be a storage for your files - you can also place a floor vase with some bamboo sticks - the asian theme would really work here as your wood is black/brown this would also turn out to be a peaceful writing space - enjoy!

You have all the reasons to redo the house, its very lifeless and looks worn out. I feel creating a separation will terminate the spaciousness of the room. Adding colours will surely help, Since you have a tan color sofa,I suggest grey, white or light blue color on one of the walls. Add some art works of the color you chose for the wall. This room needs some fillers like , books, throws, candle stands tall and lean. YES DON FORGET 1. Mount the tv on the wall make some space on the floor and Fix a large size mirror ( Wooden Frame if you can afford).

If you can't clean up the painted edge, you could always add a 1x3 piece of wood as molding. You can even carry it up to the ceiling to frame that wallpaper. I don't see that paint color in the wallpaper, or maybe it's a lighter version of the flower centers. Maybe stencil on a design using the darker color, or another color from the wallpaper to help tie it together. Then narrow floating shelves or vertical frames or something in the painted areas it you feel you need it. Maybe turn the bed around so the wallpaper is the headboard.

Have you ever thought about floating shelves? I think pairing a few floating shelves together would look great and would free up space in your living room. I really like the Eugene floating shelf from Bryght and I think it would compliment your existing pieces. http://www.bryght.com/product/160/eugene-cocoa-shelf