Hi Ni, I just thought of something....did you say you planned to do the stencil motifs on the window wall? If so, I am thinking they will be mostly hidden by the curtains. I wonder if it might be better to stencil the long wall that is on the right side of the room when looking toward the window. I could see this being a pretty backdrop to the prayer box (I think that’s what you called it?) and your wood cuttings. Then maybe the opposite wall (the one with the kitchen doorway) could hold a large piece of art?

Leather sofas can really dominate the room and can give an overall cold feeling. I would add some earthy elements, like a wood coffee table with glass or metal. Go to Restoration Hardware's website and look at their sofa room scenes. And I'm sorry I think the art is too harsh for the room. That's all your eye goes to in the room. too overpowering. I would look for something softer or maybe a cool mirror and I would add color to the room with pillows and some colorful lamps. I also think woven blinds would look great. They add warmth and give a finished look. The color of your window treatments should contrast your wall color a bit, not match it or else it starts to look generic and blah.. You have warm walls, warm floors and the woven blinds, like Hunter Douglas brand would pull it all together for you.

Perhaps a large round table might mean a rug is not at all necessary. It could be a metal tray table, or carved wood like Rebecca Mitchell Interiors illustrates. Ideas also to consider, using multiple tables can be found at http://www.houzz.com/multiple-coffee-tables. I also agree with comments above that some color is needed on the walls. You could then hang round mirrors, or an unusual curved shape like RMI shows above.

@Rock Doc: Are you addressing this to me? I haven't actually bought these tiles yet - when I do, I will definitely be going for the handmade ones. They're a work of art and irreplaceable in my opinion. However, there are also screen-printed tiles available in the market in more or less the same patterns; the workmanship is of course different, but you get them cheaper, and they're also more easily available. You could give that a shot. I'd recommend Aakaar Flooring Solutions - they're here on Houzz and are able to provide both the above-mentioned types.