Do you know how hard it is to find furniture to fit in a 10x10 living room? Next to impossible. When I first set up our living room (after taking over a former bachelor pad, bridezilla that I was), I used a futon as a couch, which was a good scale for the room.
But it didn't offer the amount of seating we need to host our friends, which we do quite often. So when our friend asked us to keep his couches for awhile, we jumped at the chance.
Mylanta. Looks like Gandalf in Frodo's house. Giant! But they are super comfy, allow enough seating for our wild parties, and enough room for Mr. Wonderful and I to cuddle. AND we don't have to commit to them, which is awesome.
I've spent a fair bit of time looking for smaller scale furniture, and there's not much out there. But here is what I would get if I could afford it:
a) because I have a thing for red couches
b) because a sectional sofa offers a lot of seating
c) because it has a sleeper included, and multitasking is a great feature for any piece in a small space
d) it is probably the only comfortable style of couch that I've tried at IKEA. Probably because I'm 5'1". I look like Edith Ann sitting on those things!
Also, good news! Remodeling Guy is back! Check out this great resource! Here is the original inspiration, 20 Reasons I Love a Tiny House.