Paint the stones white ... totally agree with the comment above -- if you can remove that brass plated front do so, if not paint it out as well. Get side flanking shelves that go floor to ceiling, and are the width from that wall on the right to the fireplace. Possibly a bigger wall mounted tv ;) the walls need a bit more colour its feeling cold and washed out. Based on the colours it looks like your couch and pillows are try cc-500 ranchwood from benjamin moore or silver fox 2108-50. GOOD LUCK :)

Check out our website to get ideas on what you can do to your fireplace to really spruce it up and make it your focal point. If you want to keep it that size you can resurface it with beautiful stone. Or you could build out the top portion of the wall where the TV is right now and make it ceiling to floor stone. For more ideas look at our installation page. We've done many fireplaces like this before. Stone can make such a big impact!
www.goodfella.ca
If you have any other questions feel free to email or call. I'd love to help!

Here are several options that will make an incredible statement. These are all carved stone fireplace surrounds and an example of the many options Facings of America offers

To me if you want your fireplace to be an eyecatcher you should find another place for your tv, remove the golden glass front and do something with the floortiles. When I look at your second photo I see a lamp, a chair and a rug that matches the colours or the fireplacestones so well. A bigger mantle in the colour of your lamp will really draw attention to the fp

Do not paint! Resurface the fireplace. Paint the wall a color to contrast with whatever color you choose with the fireplace. Also, you can have a bookshelf/cabinet made to the right of the fireplace, but on the left I would maybe leave that. Color would do wonders, but first, resurfacing. Facings might be worth checking out.

samanthalou, I would recommend mounting the TV on the wall instead on having it sit on the mantel. A solution I think would work for you is TVCoverUps. Framed art(including your own) or mirror adds to the room's decor, with the hidden TV and Entertainment Consoles beneath.
See how EASY it really is:

My tv is over the fireplace because there is literally no place else for it to go. You have room, so put it in a cabinet or built in to the side.

This mantel from your idea book

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looks to be a good choice. You could paint the stone as suggested above and install the mantel for not very much.

What are your color likes/dislikes?

It looks like you like blues/aquas with your neutrals. If you take the fireplace to white/cream, there are tons of blue/aqua shades which will make the fireplace pop from the wall.