Hi Tammy first time user had trouble loading photos have since posted a couple

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.

What is the rest of the house like? Would you like overflow sleeping areas or more storage? If you can't raise the floor (and the ceiling?) you might consider building in some comfortable seating/storage areas that use pillows/cushions and play up the multi-level idea and make it look intentional. Similar in concept to the stepped couch.

I like the tiny shelves idea because that way you have more storage for your things.