IMO, you'd be happier with the TV on that right side wall so it doesn't get as much glare from the windows and you won't need a chiropractor. With the fireplace on the left you could have a great sectional turned to face the smaller door and enjoy both TV and FP from all seats.

Thank you @decoenthusiaste. Do you mean have the TV where the blue wall hanging is and the fireplace where the entertainment center is now and have the section float in the room?

No clue how it might heat or anything else about it but I like the look of this one and it appears to be a design that could be added to an existing wall low enough to enable the tv above it to be a good height and it has an overhang to prevent any heat from the fireplace from damaging the tv. Because it has a ledge above and below, adding paneling on each side and/or above and/or below to hide wires seems as if might be done without too much difficulty.

OOPS ... Will try again to add the link.

Thank you @suezbell. I couldn't get the link to work. Can you send again, if you can?

Of course, it will have to be a gas or electric fireplace, as I doubt you could add the real deal now and maybe not gas without major plumbing. But yes, that would be lovely. And, yes, do get rid of the oversized TV contraption.

Will try again to add the link.

I would build a beautiful surround for the tv instead, without the fireplace. The electric ones look cheap imo. If you have a backyard, put a firepit there.

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An electric fireplace will look nice on the wall opposite the windows, but don’t just hang it on the wall, add a fireplace surround and mantle for the cozy look you want. Wall mount the tv on the wall with the blue wall hanging at the proper height considering the how far away the seating will be.

Additional photos to show you the space. Not sure a TV where the blue painting is would make sense unless the sofa floated in the room.

I would orient the sectional towards the windows (the way it sits you are missing that view!!!) and move the tv to the wall with the blue artwork.

Yes, that's what I meant about placement.