You certainly don't want to cover up the main architectural feature in your room, especially if you are updating your fireplace facade. You might try placing a sofa in front of what appears to be your window and two matching chairs perpendicular to the sofa and oriented toward the fireplace. Would also recommend a patterned and colorful area rug as your present floor covering gets lost on the hardwood floors. A collection of black and white photos of your child/children would be a nice touch on the wall above your sofa table.

I agree that the fireplace is the focal point of the room and the furnishings should be oriented towards it - not blocking it.

I think I would put a contemporary sofa (probably navy blue) so that the back is to where you were when you took the photo. Behind it, I would place that great console you have to the left of the fireplace. That's the wall where I'd mount the TV (you won't have as much glare from the windows).

In front to the windows, two armless or low-armed chairs with a table between. And a durable easy care area rug. You can also get a carpet remnant bound that would work just as well.

Knockout fireplace! Don't place a thing in front. Think about down-lighting it from above. How about hanging a pendant light /or chandelier near center of room? Place both couches on either side of fire place: mimic the diagonal lines OR, have one couch face the fireplace with a console behind it, the other couch at a ninety degree angle- so they surround the fireplace. Large Persian area rug in muted gold tones with glass and bronze coffee table. Large, flat, leather daybed for addional seating. Any thoughts on painting walls? A dark charcoal on the walls would pop that fireplace out like art!