An idea I really love to update something like this is to wall paper the back wall of the media center. It will completely change the look! Maybe add more shelves in that larger section, or leave it and hang a pieces of art in that space.

I think that media center just accentuates the unbalance on that wall I would drywall over the top part and then have that side equal to the fireplace in height it would put the symmetry back to that wall and still keep the storage for all the T.V stuff.

I agree with marilynellis, the trim is dating the look. I would remove all the trim, just leave the trim around the fireplace. You may want to replace the mantel with something like a reclaimed wood, or a thicker mantel painted white.

The Lexington 60" Shelf or Mantel Shelf in Medium Rustic Distressed · More Info

For the media centre on the right, I would add a couple of shelves in the open space where the TV used to go and use it for open display.

Why don't you consider shiplap on that entire wall. Take the framing off the top and left side above the mantle so just the side unit is framed. frame in the windows and soften with Roman Shades mounted outside the frame.

If the side unit is too deep for a bookshelf you can have your carpenters add a false back.

Reconfigure the shelves in the unit.

Add a small mosaic tile to the fireplace surround or a large stone as shown below and retile the hearth in stone or a large format tile.

Crown the ceiling and beef up the baseboards.

Not inexpensive nor a quick fix but certainly less $$ than removing everything and starting from scratch.

You could also take it a step further and add window seats.

If this interests you I'll send you a quick sketch.

This pic just gives you a visual for ship lap

Jerome Village Lot 125 · More Info

I like the idea of removing the framing over the fireplace. Install lighting in the shelving area. Remove the shelves that are there and replace with glass shelves. I would reface the fireplace and change out the mantel too.

I think once you put the t.v. up and add more shelves to the other side, it will start to look good to the eye. Beef up the mantel and molding. Put drapes up. It will start to look like it belongs.