Do you want to mount the TV on the wall where it currently is? If possible, I'd mount it on the wall to the right (next to the fireplace where the loveseat is currently positioned). That way your couch won't be perpendicular to the TV (which makes for a not-so-great viewing experience if you're big TV people). If you rarely use the TV, then this isn't as big of a deal.

When people ask, "how should I decorate this space" I usually ask what their needs are first. Are you looking to simply give it some character or do you have storage needs or need a lot of seating? That's always a good place to start so it can be the most usable space possible. For any room with a TV, I recommend a nice, gauzy curtain with some kind of blackout roller or shade mounted right under it. That way you can darken the room when you want to watch a movie and have nice natural light the rest of the time.

I like that nice red wall but if it's not your favorite color, I'd use a similarly bold color to give the room some drama. The lamps next to the TV really aren't doing anyone any good where they're placed, so I'd move them closer to a seating area where they can be used. If you find that there's not enough light in the room (a common problem) then I'd consider some lighting overhead or sconces in the future. They'll do a lot better job of lighting the whole room whereas a lamp with a shade is good for lighting an area within a 5-foot radius (give or take depending on the wattage and size). If/when you move the lamps and there's an empty space, I'd live with that space for a month or so and see how the room is working. Sometimes less is more, sometimes you might need some storage and sometimes you need a few more seats. That way you'll have some wiggle room once you figure out how it's all working.