Also I am aware that I need some curtains.:D

I was thinking of adding a arm chair on each side of the fire place. Does it sound like a good idea?

yes, that would look good, but make sure you put it on the opposite side of the room where all of the other furniture is. Otherwise the room will look off balance. A nice martini table next to the chair would look great. Kind of make it a reading area of it's own. Even a stand up fun light would look good behind the chair. Keep looking at houzz for ideas!

You could add a much larger natural jute area rug and have both sofas on it, pulling them away from the wall. Place one facing the fireplace with a sofa table behind it. Move the one against the right wall out away from the wall and place a very large canvas art gallery wrap type.
Paint the walls a little darker coordinate subtly with your new rug. I would leave your trim white. Try a little lighter mixture of the wall color on the ceiling in the recessed part. I would put a linen drapery panel very high up over the top window, one on each side creating a great look. Use some textural pillows and throws to coordinate. Bring your samples around to coordinate things. I would probably choose the rug and drapery first then the paint. Use a color that will flow with your kitchen.

What a great space! I would pull the one sofa over to the other to make an L shape as well, this will create a better flow for seating and conversation. Then you can always add chairs on both sides of the fireplace for extra seating, each with a small accent table.

If you're into entertaining, you could also place a pub style table to the right side of the fireplace with 2-4 chairs and then have your sofas in an L shape and 1 accent chair next to the left of the fireplace. I would place a sofa table behind the one sofa facing the fireplace but you also don't want too much furniture or to take away from the fireplace.

You could always paint the main wall with the fireplace a creamy, warm yellow color and continue that on the walls that open up to the ceiling. Below that area, I would paint a lighter creamy, warm yellow color, this will help to enclose the space and make it cozy and warm versus open and cold.

Draperies or roman shades would look great in here, depending on the style that you're wanting. Roman shades tend to me more clean and simple looking and won't take away from the focal point of the fireplace and the beauty of all the windows. Of course accenting with some pops of colors in throw pillows, blankest, artwork, etc. will tie everything together and I'd even add some larger scaled items to the "shelf" above the walls. This is a great architectural element of the space so you want to accentuate it with some large scaled baskets or vases...

Lots of great space and natural light to work with!

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Love your place! Since you have browns already in there, I would add some pops of color. I think you were onto something when you said the armchair idea. here are two fun chairs I think I would put there:

http://deciture.com/shop/furniture/9/spring-bliss-victoria-chair/
http://deciture.com/shop/furniture/9/glasgow-ikat-clifton-chair/

Go a aqua in sofas. With a cream trim. Place across like you have and get a 24" square coffee table glass or reclaimed wood. Get two low back barrel type chairs in a print using cream and the aqua . Area rug a 8x10 solid cream shag . Add round end tables next to sofas. Add decor items in coral, and cream. A big picture in bold colors over fireplace. Mirror could go in a entry. Your floors are very dark so to lighten up room need very light rug and furn.

Add roman shades to windows, cream. Add faux palms to each side of FP. On mantel on one end only add very tall (3) pots in turquoise and coral. Nothing needed on top windows.

Place the 2 chairs next to each othe could go armless also then face them towards Fireplace. On wall in back of sofa get (2) 6 ft floor mirrors dark frames or silver Ikea carries. Place 4" between.

You don't need to put anything above the moulding - But I would paint a contrasting color below it - This will create a sense of scale, and help to make the moulding feel more like a feature, than like something that needs to be addressed with accessories.

You've got a start on adding color with your art - if you like it, I would pull some of the reds, for accessories (pillows, pehaps an ottoman, window treatments) and a soft gold for the paint below the moulding.

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The wall with the windows looks yellow. That is not very friendly. A light brown tone paint (beige) would work better and go well with the floor. Do you have any collectables? Do you have any trophies? Quilts? Family pictures? Colorful pillows. Maybe the furniture is too dark. Maybe White.

Also treat yourfireplace as the primary focal point of your room.Lovelybig room to work with.

I like the couches facing each other. I'd get a bigger lighter/brighter area rug. This is where you can move away from all tthe browns. Because of the neutral dark floors litteraly any color will go well. I'd change the light bulbs to LED, which have a cooler white taking you away from the warm golden look. Also add some tall potted plants like a fiddle leaf fig or even apotted lemon tree In the corner near the entranc. Once ou get your rug sorted out, you can get your new highlight color to change out your artwork. and mirror. Depending on your budget you might consider a new coffee table and tables not so heavy wood look. Once your Christmas decor is put away you might add curtains on either side of the fireplace. Use two short curtain rods. They should just be decorative not really wide enough to cover the windows something along theses lines

Treat your fireplace as the primary focal point. Depending on your preferred style get a unique mirror like the one below, (Consider hanging it sideways, And add some flowers on either side to soften the look. You've got a great base to work with ( i lean towards whitish walls). Good Luck!