Hi. Oh boy I got a good example for this issue. We had the same problem when we bought our house two years ago. The fireplace was 4 feet into the middle of the family room. I will include before and after photos. If you have any question just shoot me a note.

Don't put the TV above the fireplace. Not only is it too high for proper viewing, in your living room it would almost touch the ceiling, making the entire room feel really low. I actually think you should avoid putting much of anything on top of the mantle, including art because even that small piece right now it making the ceiling feel super low.

Some updates you could do though would be painting over the brass parts of the fireplace screen. Also, changing out the dated green tiles would help a ton.

You could replace the molding so that it's not so high up on the wall and covers more of the green tile. Maybe that would make enough space to fit a tv.