I think you should accept that the speakers are there and instead of just trying not to cover them up, incorporate their shapes into the design. They're not art, but they're not ugly, either. So I suggest a major declutter, a clean mantlepiece, and -- as that does leave the fireplace looking a bit bare -- a gorgeous firescreen, preferably from the craftsman period. One like this would have to be moved when you're using the fireplace, but there are beautiful metal ones -- tree silhouettes and the like -- that could stay there all year round, I think. Hunt the second-hand shops? It would bring the eye down from the blank TV screen, but not distract from it when you're watching.

http://www.pinterest.com/flickrcjb/style-arts-crafts-uk/

You have done great so far with the room. Agree with leaving the mantel 'empty' to provide a cleaner look.

I can see that the stairwell prevents you moving the left cabinet under the window, but the cabinets are detracting from the FP itself and their style seems to be a bit too Craftsman for your more contemporary seating. Consider using them elsewhere in the home or selling them on Craig's List. Agree that you should remove the built-in speakers in favor of a sound bar. There is too much going on on that wall with windows, TV, speakers, cabinets and art. You have too much small clutter on every surface. Nothing is impressive or interesting or catches the eye. I can't identify much of your decor on the credenza, but it needs a large piece of art you love hanging above it. Note the uncluttered look below. The children's pix could be hung in a vertical stack on the wall beside their little table. Replace the shaggy rug with something brighter and patterned to add some life to the space.

Thanks for the feedback so far. We love the cabinets and had them custom built out of solid red oak so selling them isnt really an option. I do agree that architecturally the windows are too wide. Oh well. I really like the idea of some sort of "organic" wall hangings in a pair to hang between the tv and the windows to add flair and cover the two speakers but will also let sound through. Any suggestions on where to find something unique? I've searched on etsy and come up empty handed. Just a lot of blah tapestry stuff. Want something that really catches the eye ball.

Love the idea of a craftsman fire screen. On the search! Our decor and exterior is mostly in this style, but updated craftsman is what we call it.

Thanks for the feedback so far!

Exactly, updated craftsman. I love that! Love the cabinets, too. I would defend them with my life, if they were mine. Have fun.