Downplaying a design mistake

I have a confession. I experience couch remorse. When the husband and I started our family, we took what we could get. For years we lived with baby-stained beige Leon's fabulousness until I could not take having guests over only at night as to disguise this shameful secret. So off to the couch store we went. Armed with all my best design advice on picking a couch (pick classic lines! a neutral colour!) I was sure I could pick a gorgeous sectional that would stay stylish for years to come.
Impatience got the best of me. My home town has very little in couch selection; I knew I needed  a sectional so that everyone got a seat on movie night, and my husband insisted a chaise did not count as extra seating. So when I came across a seven seater sectional in the dark gray colour I wanted, I figured I could make it work as the arms were a classic shape. 

So what's the problem? you may ask? I suffer from a lack of spatial ability of sorts. Either that, or I just need to learn to use a measuring tape. Warning: NOT a pretty picture ahead:

This.Couch. Is.Huge. It ate up two walls of my living room, pushed my T.V. in front of the heater and sucks up the little natural light this room gets. Oops.
Life goes on. I needed to make this room bright and feminine, so I turned to MyDeco to create a moodboard to see if this was possible. No, they do not have my giant couch in their archives but I came close with the colour and shape:

You can go here to check out the sources for all of these items and keep and eye on any future moodboards I make. I love the bright and cheery yellow and the feminine accessories and lighting. Of course, I kept the furniture light and leggy to downplay the heaviness of the couch. I'm not sure if all of the furniture is in the budget (I may have to make compromises!) but I am excited about that coffee table, especially since cb2 is coming to Toronto in the summer!
Do you think it works?! I may have a new addiction at MyDeco!