Well you could add one sleek thick wall mounted plank across entire wall and remove tv hutch and have tv and other artwork or vases displayed. Or you could keep tv hutch and add a little cafe table and couple of leather chairs to the right of with large mirror or artwork on wall behind.
Or get one very large framed artwork to fill centre 3ftx4ft? add bench below remove tv hutch and replace with some minimal shelving for tv and sound. Cheers

I like your back wall with the TV in the front. Do you have pictures of rest of the room? How else is this space used for beside watching TV?

Here is a pic from a different angle. The yellow wall will be painted gray and cedar wall will be light gray stained like the original post. Unsure of the fireplace (if we are painting or leaving).

This room will be used as our living room. We have a small (hopefully growing soon!) family of 3!

I would hang a retractable projector. Check out Screen Innovations Black Diamond screen because of the natural light.

Jjdesign, nothing is attached. Excited to see though! :)

Looks like you are lacking any soft surfaces, rugs, curtains, art, plants and personal effects. Put a large painting or neon sign or small table along the wall by the pool table. The area next to the pool table looks like it was meant to be a dining area so a dining table and rug would be nice with art on the wall and a hanging light over the table. You should really update the light fixtures.

photo 1 would look very cool in your room. [houzz=]
photo 2 is another idea. [houzz=]
photo 3 & 4 ...kids?...how about a play area: toys, art, games, books, etc.[houzz= https://www.houzz.com/photos/2011-showcase-hillside-retreat-rustic-family-room-new-york-phvw-vp~375629]
[houzz=]

Thanks everyone!!! I will post pics as soon as we get completed! Loved everyones ideas!!! ;) Think we will do 2 chairs w a table between!! But still welcome other suggestions!!