I am in the process of remodeling my room and hired an acoustic engineer for the job. His recommendation that we are going with is true hardwood, hand sanded and finished, then covering a significant area with carpet so you end up with a relative amount of each. The room is 20W x 23L, we will be using two carpets. The front wall carpet will be 15W x 8L (from the wall to a couple feet in front of my speakers, the rear carpet is 15w x 7L and will be start about 18" out from the rear wall. Effectively I will have hardwood 2.5' around the perimeter (excpet the front wall) and a 6' wood path across the center of the room. I haven't heard it yet, but this guy is pretty well regarded so I can't imagine he would steer me into a disaster. Caveat is this treatment is tied in with everything else we are doing to the room, so it's possible it may not apply to every situation.