I don't quite get the brick recess/arch to the right of the FP? Must be for wood storage and/or a BBQ! lol I would have the brick covered with drywall and have installation for the TV put in there by the FP so you have one focal wall for FP & TV. Then you can turn the sofa so it doesn't block the light. You can also eliminate the huge dark TV center and the exposed wall will add more light to the space. This will become an amazing space if you can do that one thing. You may not even have to paint.

I think a gray would be beautiful. Paint the recess in the FP wall gray as well. Some new throw pillows in various colors and textures. Then add some blue and red pillows.

Removing the TV unit and moving the sofa in its place and painting the fireplace wall in white will make a huge difference to the brightness of the room.