I actually really love this pallet idea for a home theater or gaming room in an apartment. Can have the friends over and there's even room to sleep here! In fact, I think I'd sub twin matresses for the bottom cushions, but cover them with living-room-style fabric. (faux suede or something)
This is my L-shaped pallet couch that I built. Easy and inexpensive with the twin mattresses instead of cushions. There is a fitted sheet on both the top and bottom. I included little holiday lights in between to sparkle things up and some old books on the "shelves" to make it look classy. I also added a few pallets in the corner to act as a table. My new favorite room in the house!