There is contrast between the traditional furniture and the focal point of the floor which pops, draws attention. I would recover the sofas in cream colored soft fabric - suede. I would leave the curtains grey, and put down a large neutral area rug. The edges of the room would show the pattern of the floor. I would color the wall and add texture to it, but not too dark as the room will appear smaller. Add a picture and put a nice plant holder, large vase in the left corner of the room - an oriental-style vase. Or, a cream-stripe fabric on the sofas. You could go soft or bold in this room - depending on your taste.

OK... but the wire wont be lower as it is fixed now. The wire in the pics below is the wall facing each other. They were leveled on equal height but the beam on one wall makes it seem a little above. But i think you guys are absolutely right that up and down lights wont look good there. I think you are right about down lights lessismoore. Would it look good if i go with two different lights on opposite walls??? it would look odd right.

You don't have to give up your beloved pink. Pink, brown and grey are doable. I googled pink and grey living room and saw some great pictures. Maybe get a large carpet that pulls out the pink (must match the same shade of pink). Then place your beautiful little pink and cream Kashmir(?) carpet over it. Also pull that same pink into sofa pillows. And a similar pink and brown Tablecloth for the dining table will pull the colours together. Just need to make sure all the pinks are the same shade with small accents/border of the same brown and grey from the sofa. Solid colours or subtle designs will be easier to coordinate than bold dramatic prints. These 2 are not the right shade of pink but you get the idea, I hope. Carpets with tone on tone pattern. A dusty rose on one wall would be nice too.

I feel partitions are not needed. You already have too much for the space. Adding a partition will shrink the space further. The simplistic solution, you do not wish to discard any furniture would be to paint all the walls in lighter pastles. And use some wall painting frames to highlight certain walls.