Can you show the rest of the room?

Depends on the style of your home. In interior design, we must think about the entire space, including floor, ceiling, molding, furniture, stone, etc. We need to have a united and cohesive space. Here are ideas from HOUZZ. https://www.houzz.com/photos/query/eclectic-panel-tv-wall/nqrwns

Without being able to see more of the room, I'm not sure why you want to emphasize this wall with some type of paneling. The fireplace is right there. You might want something that integrates better with the fireplace. The wallpaper looks out of place, so I think you're going in the right direction by removing it.