It's not a supporting wall, how about removing it, open it up and create a knee wall with columns.

Thank you for commenting. The other side of the wall is a bedroom. How would that work? As you can see I'm not very visual with decorating. I need loads of help. I want to make this room a cozy pottery barn like space. I'm in a beach town and this space opens to a beautiful pool. Thanks again for your suggestion.

How about adding a little more art?

Or a mirror?

Another image

Not sure if the shelving wood detract from the fireplace. If not, I would go with the shorter one and a large picture or white framed arrangement. The rest of your room is lovely.

HI -- You say you live in a beachy town and have a view of a pool which sounds real nice BUT - I think you should rethink your color scheme . I don't like the colors on the walls and the faux trees - it all looks too 80's to me . You have the perfect place to go more beachy. Have colors that are in the beach glass tones . Or better yet have all the walls painted in a white sand color and accent with beach glass colors into the decor items such as pillows and so on. This will make the house flow and it will seem bigger and brighter. Also include weathered driftwood into the space in side and coffee tables etc. For that one wall you were asking about , I think a huge big square modern painting would be great - or a weatherd wood or asian style console table or cabinet with art or a big round mirror and a lamp or two and select decor pieces. That wall would also look great with a wallpaper in a natural texture like a linen or grass cloth. Instead of the faux trees op for real parlor palms in a big earthy pot or basket or asian fish pot - ( these are large asian decorated pots / some set up on a little legged stand ). Your furniture is fine and would work with these ideas but the rug would have to change . An area rug (bigger) in a natural material like a sisal or something that looks like that,or even a new style shag , would be better, it could have a bordered or bound edging. Drapes would be nice in gauzy white soft semi-sheer materials , hung on chunky wood rods hung from near ceiling height.

I like the bookshelf idea. Maybe add feet or wheels on the bottom for more character. Large wall art or floating shelves for the wall. Or even add more seating with a console table and stools. Picture taken from http://blydesign.blogspot.com/2010_08_01_archive.html

I'd do a gallery style wall of framed photos of either family or a mixture of family and other art you like. You can have all the frames the same size and color or use different sizes and frame colors. You can go all one look (eg. black and white photos) or use varying styles/colors, etc. Here's a link to a blogger friend who just did a great post on this very topic. http://WWW.RESTYLINGHOMEBYKELLYBLOG.COM/ideas-for-that-wall-behind-the-sofa/

Also I would definitely put some table by the large chair and ottoman. Every seating place is better with a place to put one's drink, book, etc. Maybe there's a place for the tree, maybe not. Don't be 'married' to it if you can't find a place for it. Sell it and buy something you do need/want/like even better :-)

I think this'll give you some ideas. Best of luck!

I second the bookcase idea. Books make a home, even if they are photograph books.

IKEA's Billy Bookcases could do justice to your wall. No chair and a half and no artificial plants tho'!

Wow, thank you ALL for your awesome replies!! I appreciate all of them. I am replacing the rug with a softer rug from Pottery Barn. I agree with losing the fake tree, but adore my Crate and Barrel chair and a half so that stays. Thanks so much for your suggestions!

Why not make this wall a feature wall. Using a pattered wallpaper will help fill up the space in an easy and simple way.
If you plan on keeping the peach walls use a soft colour to compliment it such as;
http://www.primewalls.com/products_residential/viewsku/123

Maybe draw inspiration from being in a beach town and bring in a very natural element:
http://www.primewalls.com/products_residential/viewsku/672

this will also look great if you decide to paint the walls a different colour, maybe have more of a blue scheme OR paint the walls a more subtle sand colour, and do the feature all in a nice blue/green;
http://www.primewalls.com/products_residential/viewsku/78

Example of beach home using white and blue/green - aqua colours

there are tons of options that will fit any Scheme, just depends on your style and what you want to achieve overall
- Good Luck

Prime Walls.