HI -- You don't really have to do anything or have anything up in that niche ,but one thing I would do is get rid of that molding strip on the bottom edge or paint it out to the wall color . If it was mine I would put a photo mural of sky in there and have nothing on the shelf or a couple of metal bird sculptures and that's all. Mount the TV low on the wall with an articulating bracket and have a console/low buffet under and get rid of the stand .. Then re-position that painting at the same level as the TV and fill in an around with some other wall décor (crosses)(wall clock ) ,paintings and so on keeping well below the 8 foot level height . No metal scrolls unless your style is Italian Tuscan . To cut the contrast of the large dark sofa , you need a darker richer wall color . Or wall paper with a horizontal texture (grass cloth ?) . I don't think you need an accent wall.. room is too small . Some nice full height full width drape panels on the window wall . A much bigger area carpet ... room size less 18 inches around .

Potchiemagoodleberry, thank you so much for the feedback, I think that was part of the problem. My husband is about 6'4" and he placed the art about his eye level. Just so that I am clear, are you suggesting that I place the tv at eye level and put the art beside it? I love the suggestion of the coffee cable. We had one but it had a glass top and with 2 year old twins, it was a decision of either moving it or risking it getting broken. I though of chairs once but didn't want to add too much clutter. Maybe that's a way I can add some color to the room. We tend to pick up items in neutral/brown tones. I just think we have too much in the house now and want to add some color. Any type of chairs or colors you suggest?

Lefty47, thanks for the information of the room carpet. I didn't know the rule on that. I purchased one that just fit the area into the sectional. I also had never heard of grass cloth but I love the look from what I saw when I searched it. By full height full width drapes do you mean drapes all the way across instead of two separate sets and start them at the ceiling?

HI -- Yes, from ceiling to floor , but just for each side window because of the fireplace . And for the center window over the fireplace you could do a frosted overlay ... Wallpaperforwindows.com

Potchiemagoodleberry has you on the right track. The tv and console should be on the biggest wall. Put your painting above the sofa ( the other is too small anyway and can maybe go in the entry for some continuity) . Chairs flanking the fireplace would make it the focal point of the room instead of the tv. Add a few more of your favorite things on a coffee table and add a rug and your room will look a lot warmer.

Move the sofa closer to the TV wall there is way too much space between the two, This will give you the opportunity for a sitting area or some other use. The picture is too small to have on the wall by itself; move it to a smaller wall and then you can use the wall as a gallery for family pics or other pieces of art.

Mount the TV on the wall in place of that picture. Buy an electrical fireplace to go under TV. Put the end tables on each end of sectional and go to Wayfair.com and look for some accent furniture and pieces.

Here's what I would do, remove mantle above fireplace (it seems a bit small) and cover the window or back the artwork with some sort of light blocking material and hang the picture above the fireplace. Then I'd install curtains on either side of the fireplace (you could even hang a cross above each window). Then I would get a long console for the TV and put it against the wall on which the picture currently hangs.

Here are some better pics. TV stand and rug are from o.co and curtains are from IKEA.

I absolutely love all the ideas coming my way. It is opening my eyes to so much. I definitely know that we will move the tv to the large wall by mounting it and adding some type of piece below it.

er612, What software do you use for the mark up drawing?

They have you on the right track here!

And I like how er612 has the TV off center from the console. It is a modern look, and balances out both the angled ceiling and the niche. I also think you should either fill in the niche, or paint the trim a wall color. It is too high to appreciate anything hung there from the ground.

K S - I just copy and paste. I would just leave the niche for now, especially if you find a longer console. Look for a natural wood-looking credenza for your TV. It will balance the other elements in the space. Check Craigslist, which is where I got mine. Mine is actually an old dining room buffet that I put a hole in the back for cords (dining room cabinets are usually higher than TV cabinets, which is nice in a house with young kids). If you aren't successful on Craigslist, here's the one I posted from Overstock. It has great reviews… http://www.overstock.com/Home-Garden/Lawrence-Entertainment-Center/4273819/product.html

Also, don't worry about mounting the TV right away (unless for safety). The TV will look fine sitting on a longer console.