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I think the sectional is just too bulky for the room.. would it be that bad to leave the TV over the fireplace? what are the actual room dimensions? If you hang the tv on the short wall you need to have a way to watch without straining your neck.. what is the width of the room from fireplace (with the hearth) to the wall? option 1 - get rid of the sectional (yes it is comfy but bulky) and put a sofa facing fireplace, get 2 swivel chairs (recliners or not) to either face the tv on short wall or swing around and face the 'people' sitting on the sofa and a narrow ottoman for additional seating.. sketch the room on grid paper with as exact dimensions as you can.. option 2 - leave the TV above the fireplace but i would still replace the sectional with a sofa and chairs so you have more walk through space and the ability to move the chairs if you need to.

I would consider changing the art above the fireplace, it seems to add dark to the darkness below and seems to be too large making the windows appearing undersized. Add outside mount Roman blinds to your windows, see the photo attached, note they are up higher on the wall. The art is large but bright. Normally art is not larger than the firebox unless on a very tall wall.

Thanks so much, everyone, for helping me out with your perspectives! As a next step I am going to get a landscape designer out here for a consultation. The previous homeowners were avid gardeners, and these plants are popular in the PNW (Japanese maples, rhodies & azaleas, wisteria, clematis, burning bushes, japanese umbrella pine, etc) so I hear you on your advice about being thoughtful about what to keep/get rid of. We've obviously let them overgrow to the point they are out of hand. However there is some benefit in the privacy they create - as we have one of the few acreage properties left in our (desirable) location so we want to consider how we maximize what is unique and special in our property. Appreciate your help!