You need to scoot your sitting group closer in to fireplace and then angle chairs so that one is in that corner. Where you have your seating area not looks like it should be a dining room?

Do you watch tv from the sofa or would you prefer sitting in the chairs?

The dining room is actually to the right of the fireplace. The chairs can't really be pushed back any further while still allowing room to walk.

We do watch TV from the couch. I've previously had the couch against the wall and the layout just looked off.

I concur the seating area should be moved towards the fireplace. Then place the slipper chairs further apart angling in on outer edges of fireplace. That way they won't block the view of fireplace so much. It will also help with the bare walls on the sides of fireplace too. You could then hang a single framed print just above the level of the chair top, maybe an 11x14 size. Then add a sofa table behind the sofa to help fill the space. Lovely room you have, these tweeks will really help it