We use a futon for a couch and one for a matching chair in our living room. We wanted chemical-free seating and could not afford organic furniture. We bought a nice looking cherry wood frame with arms and bought the matching chair. Then we bought futons with no chemicals, no borates, just cotton fill. We had the company stuff them 10% more than they would a mattress so they'd be stiffer.
We then bought really nice fitted zip-on covers for them and then got coordinating throw pillows. The covers are thick and textured and look like upholstery.
While this is not my ideal arrangement, the futons really do look nice in our living room! They are not as comfortable as a couch, but we have gotten used to them and don't mind them. I do have to reposition the mattress from time to time when it slides down a bit. But we do have three active boys who are leaping all over this thing.
We are happy with our choice.
Good luck finding something that works for you! We bought our futons from whitelotus.net (we also bought futon mattresses for sleeping from them) and we bought our futon frames from a local store.
ETA: Here's a link to some pictures where you can at least see the futon chair (these pictures were focused on our floors so I did not take a pic of the couch). The chair is more comfortable than the couch. You could buy two chairs with matching ottomans, which together could be converted into single beds for sleeping.