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.

Pankaj, I just realized that initially you told us that the bathroom area was 12'-0" x 9'-0" and later you mentioned that it was 11'-8" x 8'-0". In the last floor plan, I forgot to change the bathroom with the new dimensions. Below is the floor plan with the correct dimensions for the bathroom. The bedroom is ok, I drew it 19'-2" x 12'-6". The new layout does not change the way things are placed. Everything still fit. The only difference is that the vanity is now 4'-4" long instead of 4'-8". and the toilet is closer to the shower by 1'-0". Can you give me the lengths of the walls K and L. They are the walls between the vanity and the shower area. I will send you the new layout once you give me the length of these 2 walls.

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.

Upholstery and egg crate type foams will not be rigid, and may not be flame retardant. EPS and XPS construction insulation foam are lighter weight, more rigid, and could be covered with batting and fabric. They come in 4'x8' sheets, but can be cut with a utility knife into smaller sizes. They are available from a big box home improvement store like HD or Lowes. Not sure if they are flame retardant. Depending on how large a piece you are mounting, I would think they may be light enough in weight that they could be mounted to the wall with 3M removeable hangers of some sort.