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Mid Century Modern help needed (long; lots of photos)

Hi all -- We have a 1962 mid century side-split level that has some pretty serious mid-century vibes. Unfortunately, I have more eclectic tendencies, so we need a little help making everything work together. I have removed some 1980s mirrors that were once glued to my fireplace wall, but now I'm stymied. How do I fix this fireplace and make it really warm and inviting without ruining the mid-century lines of the house?

The mantel is this rather monolithic wall above the firebox that sticks out beyond the firebox by about 6 inches. The surround and hearth are travertine that goes all the way across the wall, starting at the fireplace and running all the way to the half wall/catwalk. The room is asymmetrical, with two very large floor-to-ceiling picture windows in the corner on the other side of the fireplace. My inclination is to replace the drywall and find a chunky wood post-style mantel and give the protruding wall a vibrant accent color, while keeping the rest of the walls fairly muted. But I may be totally off base.

Background: We use this room as our TV room. We have two young kids and a dog -- white/off white is out of the question. Warm, cozy and comfortable are VERY important. The room is carpeted with a loop pile in a medium toned brown that picks up the browns in the fireplace travertine. Carpet is new; someday maybe we'll put wood in, but I really like the comfort of carpet.

I don't want to go too far into the mid-century modern realm because we have some lovely and more traditional furnishings to work into the scheme. We need to replace our sofa (currently a traditional styled sectional that is blocking the view of the fireplace) with something (a settee-style sectional? a modern sofa and an Eames chair?).

Here is the fireplace in its current form:

Fireplace

Here is our gallery wall on the catwalk above the living room: Gallery Wall You can also see the top of another fairly traditional looking floor lamp from this picture

Here is our front entry, which is open to the living room:

Front Entry

Here is our coffee table: MCM coffee table

Here are the wrenches in a "pure" MCM design:

Tufted reading chair and leather ottoman

Deco-esque console

Traditional style entertainment center Sorry -- this is a picture from the old house.

The room (not including the entry) is approx. 19' long X 14' deep.

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