You could put mirrors custom sized & fitted into the windows over top of the glass. I can't tell from your photo but I'm hoping the windows are both the same size. The mirror above your mantle could then be replaced with some art & accessories.

Updating the trim color to warm white or a cement-white would be great. What are your favorite colors? Knowing this would help guide color choices for your walls, making sure you choose muted/grayed down shades from among your favorites. My first inclination is to go mushroomy-green or sage green to coordinate with your existing wall tile while still bringing color into the room but there are many possibilities to pull in colors that you're in love with.

I agree with Next Trend Design, paint the trim white but also the tree on the mantle.. Mirrors are a good idea but you can also use a simple pattern frosted film so light still comes in but it is private. You have nice character in your home with interesting detail.

That's trim on the mantle. Auto correct can be a nuisance. Sorry

Thanks for the comments. I'm definitely taking down the mirror, as nexTrend suggested. I'll be taking out the carpet and changing ceiling fixture. Also, I'm posting a pic of the (non-working) fireplace that I want to paint. Should I paint it white like the trim? I'd like to paint the walls a cream to soft yellow, unless you guys have better advice. (I'm recovering from divorce after 30 yr marriage; and its time to wipe away my tears and accept this new home I'm in and make it my own. All of these projects are new to me, so wish me luck!)