I really like Anthony's recommendation, although I would keep the mantle wood because on my screen it seems to blend beautifully with the floor. No great creativity in my head right now, but at least I can be of a little service. Shorter fireplace:

How much do ya'll recommend lowering it? What about the sides? It just seems like it needs to be framed with something? I really appreciate your time and expertise!

Anthony, your view? I think it could go lower than I've drawn it, but no higher than that. I'm pretty sure there is a regulation minimum height above the firebox?

Gtmorrow, do you see how much better the lower height balances with the TV cabinet's height? I didn't expect that, but I think it's great. I'd love to explore some of the little treasures you seem to have in those niches.

I don't think you are going to feel a need for framing with so much less of the side strips of wall showing (i.e. because they're shorter). One thing confusing me at the moment is that the fireplace does not look centred on the corner wall -- but I guess that is probably because of the effect of a wide-angled shot?

I don't think your fireplace is the 'problem'. It looks okay to me. I would remove the top of your TV cabinet though.

IDK, I think it looks nice as is.

I like it too although I think its too busy with all thats on it- would go for a larger canvas pic with some color and spread a little of that color in throws and pillows.

The mantel looks too high to me. Lower it to the height Rina suggested. I like the fireplace and the room, but there is too much stuff. Edit it a bit. Lose the plant on the mantel and hang one nice large piece of art above it. Take a color from the art...maybe turquoise, yellow, or cherry red, and add it as an accent.

I like the fireplace but can't see top of wall in photo. So how can you tell if mantle needs to be lower? Maybe. Or maybe edit art above and change the scale.

The mantel, by law, has to be a certain number of inches above the heat source. I ran into similar trouble when I replace my marble fireplace to something similar to yours as the installers tend to put the mantels too high to be certain they're up to code. (I was sick with the flu the day they installed it so was in another room. Partly my fault for not specifying but partly their fault for not asking.)

I made a big stink and made them come back to fix it. I really like it lower and am glad I did. I also opted for stone all the way up the wall, but I have a pretty low ceiling I have the stone extend past the ends of the mantel which I think looks better.

I'd not hesitate to ask the contractor to come back and re position it. It's certainly doable and didn't take that long to correct in my home. I was also not charged for the additional labor required as it was their mistake. End results, they got rave reviews from me for customer service and I got a fireplace I love.

For example...

I agree that the mantel is placed awkwardly high here. Do you use the fireplace or is it just for looks? I would remove all the various pieces of stuff from the mantel and hang a nice piece of art above it for now. The room looks to be really crammed full of furniture and couches much too close to the fireplace. Can you relocate the table and and trunk somewhere else and move the couches back a foot or 18"?

I really like the mockup Carolins posted, but what it does is turn it into a more conventionally beautiful room. What I love about the room as it is, is its tremendous rule-breaking character -- to make that kind of cosy corner by pulling everything close together and having such a notably high statement piece with the dark TV cabinet (and yes, with all the little things in it) is to make a one-off nostalgic kind of home-sweet-home place I'd want to spend time in with friends any old day. The thing is, the furniture is very close, but it fits beautifully -- just the right shapes to live together in proximity. Think tetris.

However, I do think I'd remove the greenery from the fireplace. :-)

I would say for a quick easy fix. Leave mantle alone. Paint the angled wall around the fireplace to an accent color. I think this will give you the dramatic focal point you are wanting. The picture cuts off the ceiling but it looks like you have pretty tall ceilings.

I really feel like I hit the jackpot today with all of your fantastic ideas! You guys are definitely the pros at this :-)
My son with special needs is older now so I have more time to spend on decorating the house again. I removed all the clutter on the mantel and added a picture I already had in another area. WOW- You guys are great! I will try to add some color accents as many of you suggested. It will be hard to convince my husband to spend more money lowering the mantel but I agree it would be easier on the eye. Our family spends so much time sprawled out on the couch watching movies/TV together so we use this room every day. Any other ideas or thoughts are greatly appreciated and welcomed! I LOVED looking through some of your projects!!! Happy New Year!

Low cost suggestion is to pick a color from the stone and paint that on just the fireplace wall. A darker color there will help balance the TV unit. If you cannot lower the mantle, hang a piece of metal artwork between the the mantle and the fire box.

Already MUCH better. Isn't it amazing what a simple change can do? Now what about the plant on top of the TV cabinet? Is it too tall?

I like to show about twice the height above the opening as the width on each side of the opening, if that makes sense.

I would be tempted to paint the wall that it's against a deeper shade, a tan or gray from the stone, which would make it feel like it's filling the wall more and add some drama...

Paint the wall above the fireplace and the short side walls.

Remove the plant from the top of the TV cabinet.

Try removing most of the accessories and them bring them back one by one to find a right amount...