Tile
I have been changing over to wood and tile in my home up north and chose all tile in my home in TV (on the diagonal). I would rather put out area rugs (you can get them as large as your room) and be able to change them at whim to change the look of the room.
That being said, I don't think carpet would settle in the grout. If you can put area rugs over it and it does fine, I would think the carpet would as well... But to be honest, I don't know.
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