Hi Houzz Pals!

I’d be so grateful for your help with design ideas for this “punch out” (pretty sure that’s not the official term… lol). The only thing we’ve committed to is mounting a TV on the top portion. Could the bottom section could work with a traditional-looking electric fireplace (not the linear kind). I love the cozy, classic look — but I’m stuck.

Here’s what’s tripping me up:

• The punch out is 10 ft wide, but most traditional fireplaces are only ~3 ft, so would that look too small? Could we tile or something around? Help!!!
• We have vents we can’t move (you’ll see them in the pic)
• There’s not a lot of space in front, so anything that sticks out too far could eat into our furniture zone. But on the other hand would a ledge be a smart way to add extra seating?

I’ll share some inspo pics too. Would really love any ideas from those of you who are way more stylish and design-savvy than I am ! Thanks so much in advance!!