It is rather difficult to see what the space looks like. Could you remove all of the things that do not normally go in this room, and then post a pic?

paint all those cabinets! Maybe a antiqued cream or even a fun blue!

Can you take a picture in daylight? It's so hard to judge colors from this pic.

Paint is the easiest. If you like the wood, you could just paint the uppers same as the other walls or paint the lowers white to blend with the fireplace and look like a unit.

Good evening)
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I'd paint the wall behind the fireplace the same color as the other walls.

If you don't want to paint the paneling, I'd paint the the shelves.

HI -- I would paint that whole wall the same as the fireplace for a fresh new up to date look .