It's simply not true that hanging a TV above a fireplace sends people to the chiropractor. It may be the personal preference of some to hang a TV lower on a blank expanse of wall but that's all it is - personal preference. I wish people here would not make outlandish claims about TVs hung higher than they prefer them.

I would try a small bookcase on the wall between the fireplace and the recliner. Perhaps a floor reading lamp on the other side of the recliner. Is that a curio cabinet next to the side table on the other side of the room? I might try to find another spot for it, as it looks a bit cramped. Try not to fill every empty corner but allow some breathing room around furniture.

I would try being more creative. Those shdlf ladders are dust collectors and hold little. You could do something dynamic with these concealed shelves

I would want the reading nook right inside the window, especially if it gets direct sun. There's nothing better than sitting there with the sun behind you as you read.

Well, who am I kidding? I'd be napping in the sun. Even better. Wake me when dinner's ready.

The window space kind of reminded me of this space I saw on Pinterest

You can place the chair where the pillows are. Picture the fireplace where the left window is.

You can place a modern planter to separate the chair from the window. You can also try adding some flying shelves on the empty wall, I have a piece like this (below), but I think is too big for your room.

It can give you an idea tho.

I have a reading nook but is in my room and I use a womb chair.

Eero Saarinen Style Womb Chair and Ottoman by Barcelona Designs · More Info

I hope this inspires you!