The fireplace space is 1'6.5" x 11' (hearth jets out to 2')

Consider tiling the fireplace, it can be an easy and cost effective way to transform the space. With a variety of products to choose from you can select something subtle that won't draw attention away from the outdoors, but compliments it, possibly a natural stone. Good luck with your project!

Thank you!

maybe this pic can be inspirational

here's another idea in the contemporary vein

You still need a focal point inside despite the nice views. Fireplace in the natural spot for that. After you stone veneer or tile the fireplace, or stucco it, consider shelving in the recessed areas at the side. The shelving does not have to match bilaterally though, I mean, it does not need to stack exactly. Rather you can stagger shelving and create some "ma" or use a large art piece to balance. One piece of the shelving can extend the length across the fireplace wall from wall to wall .
If yo go with stucco then also stucco the "bench" area of the fire place and put a couple of cushions on it to bring it into the room as casual seating. That will change how you do wall areas beside fire place.
I really think the bookcase sitting on the fireplace surround should go. Remove the fireplace screen unless you have an active toddler. You don't unless you are some kind of miracle worker with white upholstery. The room at present is feminine.
Since it sounds like you are going to do furniture and flooring as well as fireplace, and because you have an adjoining room, do not buy ANYTHING until your plan is complete. Draw it out on graph paper or use software. Take photos of what you definitely want to keep in your space, make cut outs to scale or use software to move them around, make a board for the rooms. And remember, you need a flex spot that will work for the Christmas tree, if you celebrate Christmas.
Good luck.

Could you post other angles of the room?

Natural slate would be nice....blue /grey