I don't think there is a rule..It depends on the look and the room. Your looks fine

I would suggest a smaller rug or to try placing the rug at an angle. If not, I think a contrast in the rug color may help open up the space as well!

Agreed...it needs to come over to the right side. The left and right of a sectional should have rug past the arms, otherwise furniture is too top heavy.

Old post

I would definitely go bigger