Your space is quite roomy at almost 23 feet by 16 feet 5 inches. It would help us to see all four walls. Is this going to be an area where you will eat as well as watch TV? I would put in some recessed lighting: (I like the idea of painting the ceiling a light blue or yellow.) You need to have table lamps and or floor lamps as well. If those are light fixtures on the beam, I would remove them and repair the beam. Would you husband be open to staining the beams darker? Something like this: A fireplace mantel like the one in the Crisp photo would finish off the fireplace. With yellow and cream, you could go with warm colors, browns reds and oranges or blues and green.

I did think about that - but if it is our TV/movie room I just feel like couches are more comfy than chairs... did anyone else have any ideas where to put furniture?

Well the piece above the fireplace really overwhelms the space, and most specifically the fireplace. Is there another wall space anywhere that can showcase it? trying to use this piece in such a small area makes everything else lose its appeal, it has to fight to be seen. For sure move the sofa where it faces the fireplace, or set at an angle facing where you hv the TV set to be mounted. If you can, leave the chair in the same area, use the table the TV is sitting on as a coffee table for both. The way that makes the space work is the way you need it.

Here's an alternative to a recliner that you may not have considered. It is a snuggle chair with matching Ottoman. It swivels too. Available from Plush Sofas. I love ours... So relaxing and there is room for two adults. Available in leather or lots of other fabrics too. I took this photo of the shop display one before we bought ours...