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 would use a bookcase unit with closed doors on the lower half and not too high. Wide and low maybe. Closed lower cabinets are great for toys, games and will not clutter. Open shelves tend to get cluttered after a while. When displaying books, use in stacks standing and lying down. Open space between groupings, not all lined up in rows. Add some decor items sprinkled among the books to give the eye a visual break. I would choose a horizontal art piece for the chair wall. Add some art on the long TV wall leaving a lot of bare wall between the TV . and the artwork between the corners of the chair wall and the window wall.

Despite previous opinions I have to say this - DON'T GET DOWN LIGHTS!!!! We had them in our previous home. They were constantly blowing no matter what kind of bulb used. The casings kept breaking. This meant we couldn't just change the bulb ourselves. It drove me mental. They spotlight certain parts of a room instead of lighting the whole room so when one of our main "culprits" kept blowing in the kitchen, I had no lighting above that bench until we could get an electrician in. More than one electrician told us they are a serious fire hazard. I will never have them again!

An outdoor room is like any other room. First decide what you want to use it for. For example, my back yard has a couple of rooms. The "dining room" is a table and 4 chairs under an inexpensive ($150) 12 ' X 12' Home Depot gazebo . The gazebo gives a pleasant feeling of enclosure and privacy when we sit at the table, and it also keeps the table clean and dry. We have a big hydrangea shrub right at the edge of this area to mark its edge. It's pleasant to sit so close to something blooming. The "living room" is 2 comfortable chairs and a love seat around a coffee table. We entertain there and pull the dining room chairs over if there are more than 4 of us. We also sit there to read in the evening. There's a smallish tree right beside it so it's pleasantly shady. The "kitchen" is the grill and a small table to set things on, and is closest to the kitchen door. Once you have decided how you want to use the space, you'll need to decide whether you want a new "floor". We have a low L-shaped deck that has the three rooms. Or you may decide on a concrete or slab patio for all or part of it. Farther from the house is some grass, and then more big shrubs (evergreen and blooming - little maintenance). And a little raspberry patch because it's fun to eat them right from the bush. The landscaping really comes last, once you have decided on the functions of the area. Don't start planting without a room plan. You may want, for example, to put one of your rooms right against the fence or wall, and if you've already planted shrubs or made beds then they will be in the way. You want to plant trees and larger shrubs so they are useful as the walls and roof of your rooms. Be sure to check the mature size of your plantings (it's on the tags) so you don't end up with branches hanging over your roof or over your neighbor's property. Don't make the mistake of putting in so many beds or plantings that you don't have time to sit and enjoy. A few low-maintenance shrubs that are planted close to where you sit are just as enjoyable as big swaths of flower beds that need weeding, annual bedding plants and maintenance (unless gardening is a hobby that you enjoy spending time at.) Enjoy your new home!