You can put the TV over the fireplace, not the best situation but the way the room lays out it is the only logical place to put it. If you could you should add one additional layer on your mantel that could extend it out another 4" to deflect the radiant coming from the fireplace. I would also mount it on a slimline mounting bracket and have the bottom of the TV no further than 4" above the mantle. Ideally you want the TV to be in as straight a line as possible with your eyes. You don't want to look up too high at the TV, it's like being at a sports bar. Also if you can snake up the power and the HDMI from the cable there is a box they make that has both in one so it makes for a very clean installation.

The wall opposite the couch could hold the TV - would need to mount it on the wall and that would take a while as we would need to get someone in to do it (I love my husband but he's not the handiest). Where the photo was taken is a three seat couch, so couches are in an L shape.

I would move the two chairs against the wall with the table between for a "side" seating area... which can still see the t.v. (needs some baskets or something under that table... a trunk maybe...to bulk it up). Then make an L shape with the other couch/loveseat that you have. You also have great storage along the tv wall but it's kind of bland... punch it up with a color along the back of the bookcases or a funky wallpaper. Drapes for a punch of color with some other accessories and you'll have a gorgeous room. It also looks like you have an ottoman.... put a tray on top and use it as a coffe table for a while.

When I first looked , I thought there were blue tones in the room , and I gave up haha . But looking again , I think the main tones are grey and charcoal ? I hope so . . . . . So paint ( or wallpaper ) that whole wall . Personally , I'd go burnt orange in a paint ( which , of course , isn't all that orange ) , or something in a bright or rich red base , if wallpapered -- imagine a rich red with thin beige and mid gold vertical lines if you want a classic look for example . Then matching modern standard lamps -- 1 each end . Wall mount the TV , or go for a bigger tele ( yes , I know , a lot of people don't want that as the feature , but it is a big wall ! ) BUT add 1 or 2 prints or paintings on that wall too -- again , my personal choice would be one bigger than your TV , with bright red base tones ( against a rich red wallpaper ) , and splashes of orange and yellow and beige and blue and -- you get the idea ! An abstract landscape or racehorse or torso or whatever floats your boat -- I don't like the swirly or straight line types of art , but obviously some people do . Still look sparse ? A large colourful glazed pot or two , with suitable indoor leafy plants/cactii/similar . A big shaggy rug in a warm red or orange or orangy red . Adds life , colour , warmth -- all around a common theme . And thats why I shuddered at the initial thought of blue -- 7 different blue tones will never look as warm , and red and orange never looks as good against a blue , so you are stuck with the colder look IMO .