Reader Design Dilemma-joining rooms

What do you do when you have combined living spaces that flow together? Do you paint them all the same color? How do you visually separate the spaces? Or do you want to make them more cohesive? We've got a great example of this quandary, submitted by reader Mary Beth.
I would like any advice you can offer about what color to paint my kitchen/family room. It's all one big area and needs to be painted the same color.
Here's a montaged image of the breakfast nook and the living room area

(Kitchen cabinets being painted, so doors are removed.)
I'm planning to put a beige slip cover on the small side chair in the family room, but I need to keep the burgundy sofa. The floors are a medium reddish oak color. And there's a small traditional area rug that is gold, beige, black, and burgundy.
I'm really sick of beige walls! But I need to keep the color light. Maybe a light blue or green? I love the grayish blues and greens, and think they might work with the burgundy sofa. Any suggestions?
-Mary Beth
Okay, here's my take on the matter. First question-why do the areas need to be the same? Who says they have to be the same colors? I say, each space has it's own purpose, and deserves its own color. Of course, there are architectural restrictions to work around. For instance, you shouldn't try to break a wall into multiple areas of color without natural breaks in the wall, such as columns, cabinets, or other elements. So, the structure and layout of the space does determine where colors are placed...to a certain extent.

So, where do we go from there?

First, you need to figure out what kind of lighting the space gets. Is it bright and sunny, or shady and cool? What design goals are you hoping to achieve with the spaces? Is the living room supposed to be relaxing, or energizing? Should it be spacious and airy, or cozy and intimate? These are all issues to consider before launching into color selection. That being said, since we don't have all those answers for this dilemma, let's play around with color:
Here's a soft sage green living room, paired with a neutral warm mocha color (you'd need to check how it worked with the detail work in the tiles, as I can't quite tell what color they are)
Alternatively, here's a cool gray blue, paired with the same mocha kitchen color.
Just to get daring here, pushing towards cleaner, brighter colors could further liven up the space. Here, I simply bumped up the saturation level of the green and added a cheerful blue wall for the kitchen.

You may wonder where I pulled the bright blue suggestion. When you are really stuck trying to figure out a good color for a space, try inverting the colors to find the compliments. If you have a photo editing program, you can do it digitally. Otherwise, grab a handy-dandy color wheel, and travel across the wheel for the color opposite your color in question. (Ie with a red couch, we'd be looking at blues and greens) Here, for example, are the inverse colors of Mary Beth's rug. Voila- a lovely complimentary blue shade.
As a last suggestion, to tie the couch into the decor, a rich burgundy wall would work really nicely-pulling in the living room colors with the reddish undertones in the tile work.

I'd like to hear from readers to weigh in with your suggestions. What colors do you think would work best for Mary Beth's kitchen/living room combo? How would you solve her color dilemma?