We did large porcelain tile squares laid on the diagonal in a neutral color and use a big area rug in the play/TV area. I love the effect.

We had carpet before and I hated it. It never gets truly clean and I worried about it getting wet and the associated mold/mildew (which yes, happened).

We are planning to use tile with area rugs.

We are purchasing a home with a basement that has old carpet. We will be replacing the carpet, but we are trying to decide if going with carpet again in a basement is a good idea. DH loves the idea of having soft carpet underfoot in his mancave and in the playroom area for the kids, but I hate the idea of potential flooding and a mildewy result. Any recommendations?