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.

That heat pump doesn't look too bad. It kind of blends in, and it's above eye level so it's not immediately noticeable. I like Darzy's idea of a rug to bring your space to life with some color and pattern. I'm also wondering if the TV could be moved to the spot under the heat pump? Alternately, could the TV go on the wall where your sofa currently is, then have the sofa where the two recliners currently are, and the recliners would go on the end facing the TV?

That's a fabulous idea. I don't like that front board but it's lacquered to coordinate with the cupboards, so ot couldn't be painted . I could keep the stools and improve the hated kickboard. That would be a double win. Although a lower back would be nice. I kind of like those white lattice designer ones, would they be too busy?

If you are going to the effort of retiling the fireplace surround, would you consider going to a bit more effort and creating a full wall unit which incorporates the fireplace and the TV, with extra shelves and cupboards to display and store? (I also have reservations about the heat and the TV and associated wiring.) This may also address the lack of symmetry associated with the location of the fireplace, if that is a consideration. Do you use the fireplace often enough to justify keeping it? Alternatively, a wall unit on the left hand wall, which is where the power and TV points seem to be, may be the best solution - as previously suggested. All the best.