I would move the TV to that wall to make it the correct viewing height. Get a console that is 25% wider than the TV. I think the blue is a bit harsh would you consider painting a more neutral color. With the FP and soffit I would not accent that wall with wallpaper.

I checked out your idea books and see that you like bright, beautiful color. This is a quick and funky mock-up, but the point is to encourage you to add those colors into your room. Your family portrait is lovely. I reduced the size and manipulated it with an app to add more color. I like the location of the more intimate area beneath the soffit.