I like the little niche to make a feeling of entrance. As for furniture, I suggest matching couches facing each other and perpendicular to the fireplace. Then use a coffee table between them and perhaps two chairs or a bench facing the fireplace. With the width of the room you will have to deal with empty spaces.

This is the way I was leaning.. Thank you for taking the time to share your thoughts!

Is there a TV 📺 going in the room? How many people will be using the room daily and how many guests do you want to accommodate?

If the TV goes over the fireplace, and I'd advise you eliminate the raised hearth which only places the fireplace higher on the wall and the TV that much more inconvenient to view comfortably, I'd center the 9x12 area rug and the seating on the ceiling fan/chandelier

You might want to add some floor outlets to this room since the furniture will be floating in the room.