Adorable doggie and fabulous windows. Now, for the room: The TV is too high and it makes the fireplace look like a monolith. I would try it on a low console to the left of the fireplace. Of course, this means you'd have to lose the chair in the corner.

If you're in the mood for new furniture, go smaller and sleeker so you can get more seating in the same space.

And lose the dinky rug. It actually makes the room look smaller.

Do you have a couch or is that a loveseat and chair? I have never said this but I think you need more furniture instead of less. Most people overdo it, here you underfurnished.

We really like groveraxle's suggestion. Moving the tv onto a lower stand and adding a picture/painting on top of the fireplace. A corner unit for the tv would maximize space while giving you new layout options to work with as well.