I ended up buckling to extreme family pressure and kept the wood trim (at least for now in this room). And this is how it ended up.
The colour scheme meandered a little from my original thought navy, white and apple green, to charcoal, cream and olive. The room is home to the new couch from EveryInch, soon to be re-furbished ebay tub chairs (here), SP's old coffee table now turned side table, metal TV unit from Doug up on Bourke, my mother's old desk re-furbished by father and my two beloved Featherston chairs (neither of which can't be seen in these photos).
I also picked up this retro side table, thinking it might work next to the couch (of course it was way too small), but it looks (randomly) great in front of the bookshelf. And as luck would have it the old coffee table, fits next to the couch.
Looking at these photos, it is clearly still very bare with lots to do! But I celebrated this small milestone with two new Country Road cushions in olive and cream (there was very little debate that the old ones had seen too much drool from people falling asleep on the couch!)
I still need to frame the green white prints from Spiro (here), convert this lamp base to a working lamp and find an appropriate shade. Once the rest of the house is painted I will get the light fittings installed here too. Then maybe a floor lamp?
Can't tell you what a difference a fresh coat of paint makes. The painter's next stop is the kitchen, dining and sunroom. Here the woodwork will not be spared!