Get a leather sofa - we tried everything before, and nothing withstood kid stains. Leather is easily wiped up.
Look for rugs at Homegoods and/or Overstock. Lots of affordable options that can basically be thrown away if need be. Or you could try Flor carpet tiles. You replace tiles that are gross without replacing the whole rug:
http://www.flor.com/shop-categories?gclid=CJnR7uCRkMcCFYyQHwod0TQBGA