I think tiling the fireplace would freshen up the whole room. Would you be raising and lowering the blinds often? If so, wood might be heavy. Shutters could be an option, and they are easy to clean.

Yes tile or paint the fireplace ... Romans or wood with a good qua lit matching set of valances & an area rug to coordinate .

I don't dislike your fireplace at all. I would however place linen drapes on the windows, this would balance the vertical line the fireplace has right now. If you need additional sun control during the day, I would suggest wooden blinds instead of shutters as they are bulky and block light. If you do add the linen drapes, place a nice piece of art on the fireplace or a interesting new lighter in colour wreath.

First off the windows are fantastic. Looks like you are back up against a forest, lovey. I would not do anything to obstruct the view or light, particularly as the furnishings seem to be on the heavy side. Just some nice white sheers that can be drawn for privacy and perhaps a simple valance along the top of each window would do nicely.
Messing with the fireplace is not something I would jump into. There are certainly possibilities, but right now from what I can see the fireplace is acting as a balance to the heavy furniture pieces. Perhaps a nice modern fireplace screen, something in an all black mat. Too, play around with a the lampshade. Try a "bolder" dash of color there, and certainly a different shape.

Thank you all so much for the great feedback! While I love the look of shutters, we struggle for natural light living in the Pacific Northwest, so wouldn't go that route. Also, as someone noted about the trees, we get good privacy out these windows, so keep the blinds drawn up most of the time.

With shades up you have the trendy colour of the season--emerald green! I would move that heavy brown chair out of your super view.

Wood blinds would be too heavy looking for such a long window. The cell shades you have are fine, but do a larger fold for a more proportionate look. The cells also help insulate. Curtains could be made to cover the windows, but pull each covering back to one side, leaving the fireplace the focal point in the center. The fireplace is nice for the warm, traditional look you have. If you use tile, it will make it colder looking - like a bathroom. There are certainly other types of stone materials which will keep the warmth, but update it.

silhouettes and Mock roman valances would great on those windows.

http://www.blindsdirectcanada.com/blinds-toronto/hunter-douglas/silhouette-toronto.html

They are not inexpensive but Hunter Douglas makes a shade that would be ideal for your situation. It is called the DuoLite. It is similar to what you have now, but you pick two types of fabrics, a room darkening or light filtering like you have now, as well as a sheer material. I'm sure there is a HunterDouglas dealer near you.

Thank you all so much for the recommendations. They are most helpful!

Hi there. I think if you change the wood molding around the windows it could substitute the need for curtains. Perhaps adding a mantel to the brick wall above the fireplace with a fun mirror above that could help too! For sure, replace the brass with a more updated cover.

Janishill - GREAT suggestions. Thank you! I think I just might attempt the white washing, as I like the look.
I am not at home but will post better pics of the slipper chair and rug later today or tomorrow. I would love your additional suggestions. I know the rug color is not great for the room - it's just one we had and works ok for now. But I'd love suggestions of a better rug. Though...I do have three little boys, so it can't be too light. Thanks again!!

Any additional pictures would help. Maybe looking in the other directions as well.

Ok, adding more pics. A close up of slipper chair and rug, as well as a view of the room from the other angle. I also feel like I still need something for the wall behind the leather chair.
Janishill - if I were to add linen curtains like you suggested, it would basically cover any open wall space on that wall. Is that ok? Also, what color would you suggest?

When I suggested linen drapes way up there :), I did so thinking you most definitely want to have some wall showing. Imo The drapes should not cover the wall area but have a frame of wall around them, I would have them go to the midpoint over the windows before ceiling and the leave wall space around them as well.

Oh and I would not tie them back but let them hang nicely. You could go to Restoration Hardware if one is near and get some samples to try at home if you want ready made. I'm thinking a linen colour would work but you need to try in your home.

Your windows are beautiful! I would do neutral panels in linen or duck on a thin rod about 4 inches above the window frame and as close to the outside walls as possible so you can really open up for maximum light and view. I would move both chairs closer to the fireplace still angled toward the sofa. I think you'd be really happy with a smaller cocktail table with a lighter feel. This would cozy up the space while opening up the light and views. I love the idea of whitewashing the brick.

Thank you, Susan! Also - do you know where that wreath you posted is from? I really like it!

Yes that is also from RH. Would look wonderful on your fireplace, it has the right colour and texture to go with linen drapes and the bricks.

And Edits, I have considered getting rid of the ottoman. I do love it, but think its too large for our space. Any suggestions on specific tables? I assume a cocktail table is just a small coffee table?

Working curtains with the rod mounted just below the ceiling would balance the tall fireplace. Extend the rod several inches on each side for curtain stack up. The curtains will frame your beautiful view. If you need sun control or privacy then draw the curtains. You need fabric on this side of the room to balance the heaviness of the sofa and club chair. I would eliminate the track light over the fireplace, whitewash the bricks and have a mantel built such as Janisell suggests. Add a small round or square drinks table next to the slipper chair. No chair should be without a table even if you have a coffee table as it is too far to reach. The table will also help balance the room. Paint the adjoining entry hall a deeper color such as russet red or deeper shade of the the gold in the living room. This will make the entry more special and inviting and yet compliment the living room.

Yes coffee/cocktail is same to me. Since we are encouraging light...I'd say a painted wood would be a great choice. You have a lot of brown in the room so I would find something on a smaller scale and paint it a creamy white similar to your trim color. I love to repurpose furniture so I might even paint both of your end tables and then use one as the cocktail table and the other as a side table. Its a little quirky but it would absolutely work in your space!

muellerkm...There will be a small amount of wall space around the drapery panels...and that will be perfect! Ivory linen look drapes will work best. You can find them at Country Curtains: http://www.countrycurtains.com/product/010150727+soft+linen+lined+rod+pocket+curtains.do?sortby=ourPicks&from=Search The lined drapes hang much nicer than unlined drapes.

I want to suggest you move all the furniture back then center your rug in front of the fireplace. Now you have two choices on how to arrange the furniture. You can center the sofa in directly across from and in front of the fireplace then use your end tables in place of the ottoman and position your chairs at an angle flanking the fireplace. Much as you have the now, but switch them around so the recliner is on the left and the slipper chair is on the right . They also need to be an equal distance from the fireplace and turned at the exact same angle. Or you can turn your sofa so it runs perpendicular to the fireplace on the side where the recliner is now. Center the recliner on the opposite side. Next place the slipper chair so it faces the fireplace. This should result in a U shaped conversation area. The dresser and mirror will go on the wall behind the slipper chair. One end table at the end of the sofa closest to the fireplace and the other beside the brown chair on the slipper chair side (I hope this all makes sense!)

Your ottoman is large. If you can replace it, do. A coffee table and a cocktail table are essentially the same thing and serve the same purpose; a place to sit drinks or snacks and to put your feet up when you think no one is watching! Buy one that is about 2/3 the length of the sofa. I think rectangular will work best.

Your walls are a great color and you have some great pieces, but you need an accent color. Would it be the red from both the chair and the rug or one of the green shades? Pick the one you prefer then purchase 3 identical throw pillows and one or two printed pillows to add interest. A throw across the arm of the sofa or chair will visually invite you to sit down and relax.

You may want to wait until you have white washed the fireplace, hung curtains and added in the accent pieces before you purchase the perfect coffee table! One less piece of furniture to move around right now. :-).

Looking forward to updates!.

Ok - I did a quick furniture rearrange based on some of the feedback and wonder if I have the chairs right now?
Janishill you suggested swapping the leather and slipper chairs. Is that to separate the leather chair from the dark buffet that's next to it?
You also suggested moving everything back, but then the couch would be against the back wall, though not centered so that might be odd. Including another angle of the room.
I would also agree on the accent pillows. I'd like to go off the red, though it'll be hard to match, as its actually a dark pink in the chair and rug.
Will definitely look for the linen drapes, whitewash the brick and update the brass. And do so work on the table assortment.
Thank you all again - so many great suggestions!!

Oooh I love the colors in the slipper chair - could you pull that rasberry color in somewhere? The chinoiserie look to it is one of my favorites - maybe play that up a little bit in the accents?

Sorry for the misunderstanding. I menat to move it back while you cnetered the rug. Not back against the wall. It appears (at least in the pictures) that either the rug or the sofa is off center. The amount of rug showing at each end of the sofa is not the same.

The dark chair and the buffet make the room appear weighted on one side. By switching the sklipper chair and the brown chair the weight will visually appear more balanced.

I like the two end tables as a coffee table much better than the ottoman. There should be 18" between it and the sofa. Your tray might work on top.

Oh...if you are going to leave the furniture turned the way it is the buffet should be centered on that wall.

Did you try the sofa turned perpendicular to the fireplace? Just curious. :-)