I like the Instagram picture. If you're going to go asymmetrical, it has to be way off center so it looks like a design feature, not an accident. I like the look of the stone (I'm assuming you plan to remove the small brick surround you have currently). I think going floor to ceiling would actually add some visual height to the room which would be nice. If you're unsure, you could try painting the wall (and the brick surround, if its definitely going away) to emulate where you want to put stone. It would help you get the feel for what it would look like. This would let you play with proportion as well, to figure out how wide you want to go. (I think i would go more narrow that it is tall. I like the proportions you mocked up in scrap wood.)

Hey everyone! It’s been a while since I posted updates and to be honest there isn’t too much to report at the moment! Trying to figure out where to put ducts for central air. I’m attaching some photos I thought you might like :) the first is what the beams look like inside the walls and what I’m hoping the ones exposed will look like when they stain is rubbed out. The second pic is the original flooring upstairs (dusty from construction). It’s called pumpkin pine flooring and that’s the flooring I want to put on the ground level kitchen and sitting room. Then a picture from the notching looking at the stone room, and vice versa! Hope everyone is healthy and safe ❤️

Build in/put in proper shelving/cases on both sides. Re-arrange your couches so they aren't invading the alcove area. That pretty little cabinet and table need to live elsewhere. Consider wall mounting your TV above where it is now, with it's equipment on the new proper shelving in that alcove.

First thought is to demo the interior brick, mantel and hearth and start with a blank slate. You can then shrink the width of the fireplace facing and make it look however you want to work with the rest of your decor. To save money, you can do the demo work yourself. Those bricks will probably just pop off with a chisel and small sledge hammer. Also, I would pull out that electric fireplace, it's not made to go inside an existing fireplace. The electric fireplace was made to be a stand-alone appliance sitting in front of a wall. It looks odd inside an actual fireplace opening. Do you know if the fireplace is functional? Did it get inspected prior to buying the home? Can you burn wood in it? Does it have a gas line in it? This knowledge will help us offer further advice.