This is something I know I'm going to get laughed at for my naivety by my friends with kids, but I really liked this picture because it was a nice example of creating a nice living room with a designated child zone.
Image from AT:LA.
I've always thought this rug from Ikea was a cute and reasonably-priced at $30. It would make a nice designated play area in a larger room.
Add a couple of Tubtrugs for storage and it would be a child-friendly and adult-tolerable space.
I'm going to try people, I really am, even if I end up giving up and using the Trugs to chill beer.