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I can't honestly see why anyone decided to place sconces in those locations. They're not right for the architecture and won't work with any furniture. I'd cover them over.

I'd install a 96" tall bookcase next to the fireplace.

...unless you had a TV and console to go there!

But I agree about the sconces -- they mystify me. You could do a picture light over the fireplace to light whatever art you want to hang there, and then I'd install small surface LED lights in the ceiling around the room for ambient light, and/or some combination of floor and table lamps down at human level for gentler lighting and for reading.