IMO those cabinets are just kitchen ones and scream kitchen I also never like a TV above aFP so I would for sure remove the top cabinets remoce the counter and backspalsh and mount the TV on an articulating arm above one side and a piece of art on the other. If you are planning to redo the whole wall I would suggest a lower cabinet on either side to allow the TV to be mounted so that the center of the screen is at eye level whan you are seated. Then you could do a nice large format tile all the way to the ceiling above the fire box. For sure arrange the furniture so that one chair is not sitting all alone I love Besta from Ikea for TV S along with some nice storage .