You have a great opportunity here. I do not recommend placing a tv over a fireplace. Yes, we see it often, but it is not practical for two reasons: 1, the tv has to be placed too high and 2, it is hard on the eyes to be looking at the fireplace light and the tv What I would do is to remove the plaster and re-expose the brick. You could paint it an interesting color or resurface it. Then, I would add a unique mantle.If you have the funds, ideally the threshold should be removed (more contemporary) or resurfaced (more traditional style) The wood store could be a book shelf or display shelf. In the right corner, I would place a comfortable reading chair. The TV I would place on a different wall. Without seeing the entire room, I am not sure where.

You don't see this much in photos. Usually the mouldings are painted the same colour as the ceilings which of course lowers the ceiling height even more! Vertical stripes would be fun!

Excuse my duh-ness but i'm having difficulty trying to follow whats going on here. Are these two photos an exact replica of your house and pool ? If not a hasty sketch with dimensions could help a lot. By kitchen wall do you mean the wall behind the bar ? And where is the pool wall ? Are you considering the covered area as being "inside" ? Sorry for all those questions lol Sometimes when you have a design problem you need to turn it inside out or on it's head. If you can't beat it maybe embrace it by making a feature of it : i.e. contrast by having the lightest colored pool surround and a great blue or tile inside and under the overhang, something that will echo the water color ? If you have a great covered area as in photo you'll most likely be spending a lot of time there and it could be soothing to be able to sometimes retire into a darker inside. In my book, 10M isn't small and also contrasting two floor colors doesn't necessarily make a space seem smaller and confined and may in fact even open it up. Could it be that you've thought yourself into a box here ? Sometimes one needs to give it all a good shake up and see how it resettles.

Try the TV where the sofa is now and float the sofa perpendicular to the fireplace where you currently have the big chair. Perhaps the big chair can then go where the TV was for a quiet spot for one. Or even better, pull the loveseat off the wall and put the big chair to its left flanking the fireplace.