Yes it is weird. In your case over the Tv may be the best option. Post a picture of the FP wall

I would move the chaise to the other end in bow window area and shift sofa, loveseat and recliner to the FP area and hang TV over the FP

Yes. But I’m not sure how that would look either since the fireplace is recessed compared to the wall with the clock. Have the shelf portion of the sheetrock be recessed in comparison to the brick? Then the sheetrocked wall will have 2 levels there? We are guessing that is why the builder stuck this little shelf back there.

but without the shelf, we would need to sit a media table below the tv for the tv stuff. but it couldn’t be any table as there is a floor vent.

I’m thinking it would be easier to leave furniture arrangement as is and “ignore” the fireplace. Boring

Look for a vertical to horizontal tv mount. at least that way you would need a narrowed space for when it's not in use, and can be twisted and adjustable as needed when using. Check youtube for a video

I went into more detail in a previous post. Chaise doesn’t stay in this room. Most of this furniture belongs in another room or will be gotten rid of in the near future. I was just playing with placement.

too much heat above fireplace to place tv there.

I would add drywall so that the fireplace is recessed. Not 2 levels of drywall. It will not look weird. Sorry but your existing recessed shelf is a bit odd looking as it is.

You don't need to put the dvd player and and dish network box close to the TV. They can go anywhere in the room (anywhere in the house actually). There's a little receiver that you plug into the TV, and the other end is a transmitter that gets plugged into the dvd player and and dish network box. It transmits the signal wirelessly to the receiver you've plugged into the TV. Not complicated or expensive. Just be sure that the transmitter has enough plugs for all the things that currently plug into your TV, and if you have HDMI be sure that it is a HDMI transmitter too. We live in a wireless world now!

I think the TV should be hung as low as possible. I would not worry about the light switch. There are brackets made to hold TVs on the wall.

If you want the TV to disappear a bit more, paint the wall a dark colour, maybe one of the dark colours of the fireplace. Paint the light switch cover and plug covers too.

I like that, partim. I have always thought the shelf was odd.

Is there any way to access the boxed-in space from the room behind the fireplace? For storage? Or maybe it's not a large enough space to be worth the trouble.

No, there wouldn’t be a way to access it. Good thought though. Staircase is on the backside. Like you said it isn’t that big. Not a huge loss. We could stick a time capsule in there. :)

Great place to hide the body! (Can you tell I've been reading a lot of detective fiction lately?)

Lol. Gross. :)

I agree with @jck910