We left most of our furniture behind when we moved cross country with the four kids and the dogs. When we moved into our new house, we didn't have much. So we set up a twin bed in the living room with a huge pile of pillows, some bean bag chairs for the younger kiddos and a platform rocker. We made do with that for several months. It was a little odd at first, but I just changed the sheet on the couch every few days and the pillows were living room pillows, so it didn't look to bedroomy (is that a word?).
It's a big old house. The living room is actually the old parlor and dinning room with the old pocket doors left open. In the parlor part, we have a big coffee table with three large wing chairs around. They are angled so they are near the fire place and that is flanked by two smaller arm chairs. In the dining room part, we have the tv with a small leather couch (sits three) and two large leather ottomans. If we are all watching tv together, we either drag the two smaller chairs over or the younger kiddos use their bean bag chairs. I have to agree that I love the leather couch. We've never had leather before and it's holding up very well. We purchased our couch and one of the ottomans from Ikea. The chairs we got from a friend who was renovating her bed and breakfast. I have slip covers on them, they are sturdy but worn.