Hi again Keri, My neck hurts just looking at the picture of your tv. What you might consider if there is enough room is getting a cabinet where the tv can be mounting inside and a remote brings it up into the open for view. I saw the construction of such a cabinet on youtube at one point but don't have the link. I have one that I bought used sitting in my garage but it has more cabinets with it and is fairly large. It's the same idea though.

I will wait for the pics if you are having issues post them in a comment in this same post.

I would put a piece of art in front of it, then remove it when you want to use it. And yes to painting it white. May me paint the inset the wall color. The other option is to pop off the frame with a hammer, than just drywall over it. its a pretty easy diy.

Not sure a "clean, chic look" will suit the leather seating, tufted hassock, the two chairs and your other pieces. It looks to be a bit southwestern in style, except for the marble looking hearth. My goal would be to get the TV arranged so the furniture could come off the walls and anchor onto the rug. I would want to remove the excess protrusions that leave the cabinetry recessed, and I can understand not wanting to disturb the stereo system. How high are your ceilings and how wide is the space between the two windows? You've showed us two walls; may we see the rest of the room and furnishings?