Perhaps on this monitor the lights flanking the television just look overly bright?

The niche is not my favorite, but you may like it. I would cover it with a large piece of art that would cover it; keeping my options open and keeping my wallet/purse shut.

Over the TV I would consider a large metal piece.

Thanks for the replies. I agree about the niche, but for now it stays (budget reasons). In the future I would love to do a full brick or stone wall on the angle with a new mantle etc.. I like the idea of a large metal piece, thanks! As for the lights flanking the T.V. I think its my photography skills :)

I'd look for a decorative rug to hang on the wall...they can be any shape to fill the space, as colorful as you want and add a lot of texture and softness even sound deadening to the room.

I think the space needs color so a large print would be nice above the fireplace and anything but a clock above the mantle , maybe just a piece of art sitting right on the mantel to cover the niche for now.It does not look like a huge space so I would not do any stone or brick wall in there.. A rug with some color would also be a good choice after choosing the art.

I agree with the above suggestions -- get a large piece of "vertical" art to cover the niche completely, resting it on the mantel. You might consider using the "cathedral" wall as a gallery wall. You definitely have the space for it. Find another place for your clock. (I used to love them, now I'm over them.) Nice space!

I am loving all the suggestions! Thank you everyone. I will start looking for a few pieces to add to the walls. I always have a hard time picking stuff out and can never decide. So my walls are usually bare. The clock was a wedding gift and now is broken (thanks to my toddler) so it can go :)

I need to get something sooner rather than later....my husband has threatened to put up his deer head.

Try searching "gallery wall" in photos on Houzz and see if there is a look that you like with a variety of prints and other wall art. Go to art.com and browse prints and find something that you like to look at! Abstract, flowers, scenery, whatever... you can order prints and then find inexpensive frames (Ikea, craft store, or other cheap art that you steal the frame from). With additional color and interest on the wall you won't notice the niche, although I personally would find a large print to lean on the mantle to cover it. Main point is, find something that makes you happy when you look at it!

What I see, your FP wood surround and media unit do not have to match the floor. I would stain wood in dark.

Nice ceiling height! Why not go higher with pictures?

@celerygirl

Thank you for the visual! I like the last option the best. I would love to stain the oak a different colour. Maybe in time I will. When we purchased this house I hated all the oak, but it has grown on me. Thanks again!

Love the last option.

I would not hate the deer head in there for some reason. Maybe stick him on the other end of the room. :)