I'm not understanding your furniture choices for a "family" room. The TV/entertainment unit takes up the lion's share of physical space and almost demands that you center your furniture around it for viewing. Also, the room is narrow and long, which is made to look even more so with the sofa (your only large piece) running the length of the room. Additionally, your rug is also long and narrow. The mirror over the fireplace overpowers the entertainment unit with it's overall height. Your little chairs are very small in the context of the room, and most especially when they are meant to anchor that end of the room. Then we have the chaise, backed into a corner behind one of your chairs. Your round tables on either side of the sofa with the lamps feel awkward. So what should you do? My recommendation is to cut your loses and put in place a sectional that moves closer to the fireplace and runs the length of the room and have it turn the corner to create the L where your pair of chairs are presently. That takes care of a distribution of visual weight to offset the weight of the entertainment unit. Your two larger chairs can flank the fireplace. In fact they can be facing each other at the fireplace and a rug can go in the fireplace area (horizontal to the room length) to create a separate seating area. You can then put in a second rug to follow the footprint of your sectional, running vertically with the room. The idea of mounting draperies at the windows to visually elevate and add weight on that end of the room, to offset the weight of the entertainment room, is an excellent idea. The fireplace mantle is set very high for your two-story room, and you need a substantial piece of art that runs no taller than your entertainment unit. The art can be the focal point of the room for your color palate. If you enjoy oriental rugs, this could be an excellent way to utilize the colors found in your art (or visa versa). I would place matching pieces of furniture in your two alcove areas on either side of the furniture. They could be console tables, cabinet or chests or anything that has some heft to them. Of course, you would want to accessorize them as though they are pretty much twins. It's always nice to have a pair of something at the end of a room, most especially under windows that flank a fireplace. If you decide to go this route and can part with any of your furnishings, I believe you will find the room will work very much to your liking. Much more in terms of details can be worked out as time goes on. It is never fun to part company with furniture you have hand-picked but unfortunately this sort of thing happens all the time. I would not attempt to continue in the direction you have gone so far, because the problem is not with color or anything that simple. When you are in a room, you need to look around and understand how it is supposed to function. If you have a fireplace, that needs to be addressed. If you have created a media center, that also needs to be addressed. Leaving one unaddressed and attending to the other, will create a general tension, simply because an important factor in the room has been left out, in favor of another. Hope this helps a little.

I wouldn't try to disguise them. I would try to locate them in fairly inconspicuous spaces, but other than that, just let them be what they are.

I think your room would benefit from a more clear distinction of where the living room begins and the hallway ends. It will not cut the room off. It will make the room more cosy and inviting, it seems too open now. So I agree that the sofa should face the fireplace, with no end tables just the coffee table in front. Then your TV can go to the right of the fireplace - right now it distracts from the beauty of your windows. Agree that the whole TV configuration is very large and black. Can you switch out the black cabinet with one in a lighter color? Or can it be painted/spray painted? And perhaps purchase much smaller speakers? Another option would be to paint the speakers the color of the walls in a semi-gloss paint, and replace the speaker cloth with a pale color. (You can order it online, and the speaker fronts usually just pop off if they are attached with velcro.) I did that with my DH's speakers and they just seemed to disappear in the room (thankfully). Then a big piece of art above your fireplace and you're pretty done. Choose a color in the art and get a few large soft cushions in that color.

Interestingly the guy at the Stereo shop said go to Joanna and get any decorative cloth. I don’t know if he knew really. Going to choose a light colored speaker cloth(acoustically invisible) and considering very open weave pattern of metal to top them. Looking for sources. Will post pic when done. Thanks all!