You will be happy with none of the above. You'll end up with stringy plants, ever elongating, looking for light that is just not available, and finally dieing. White light is a little better than the others, but not enough. Change your '3 choice' into '4 choices' and buy a grow bulb (the brighter, the better), or better yet, find a place in your house where your plants can get some sunlight.

Hearing you say "everything else is changed out" and noticing the Decora style switches, it might be a good resale tactic to have the entire house up to the same level. Recessed lighting would certainly be much more dynamic as the FP is usually the money shot of the Living/Family Room. Usually, 2 lights are enough spread as an accent. However, I see you have a centrally located ceiling box. To make it easier without rewiring possible homeruns, require a coverplate, or try to match the textured ceiling, I would use 3 total lights: 1 to replace the ceiling box and 2 flanking lights. I would use 3" remodel gimbal cans: I would then build a stained wood mantel out of 1x pine. Both lighting and mantel would be $100 total as DIY. For staging my preference would not be a mirror, but lean a generic large canvas picture on the mantel.

Where does the doorway that's closest to it lead? Is it frequently used? Can't tell if there would be enough room for one of these (altho a 3 panel might work best). If it doesn't block the door on the right, it could just be sitting on the floor. But if there is not much room to pass through that door, you could attach one side with hinges to the sidewall and then maybe just a hook and eye on the other side to hold it in place, but it would easily swing open to access the closet behind. Before someone comes along and says it will block the air vents, it won't. It wouldn't be installed tight up against them and air flows like water....anyone trying to weatherproof their homes can testify to how easy it is for air to flow. Lots of choices. These are all from Wayfair. You could also look at peel and stick murals that would cover the whole thing. The vents would be a little labor intensive or look for a pattern that could disguise them. Or paint them a color/s to blend in. I just googled peel and stick murals for closet doors.

Its a shame the stained glass is gone! I love that feature. I was going to suggest a cornflower blue color that would have communicated well with both the stained glass and the wallpaper on stairs as well as provided contrast with bright yellow light fixture. Though I suppose a nice cornflower blue still works- contrasts the yellow door and fixture (if its still there) and ties in with the light blue of wallpaper. You could also pull a deep teal or a medium tone green from the wallpaper- they'd play nicely with existing elements. I would paint the banister the same color you choose for walls- but would leave the paneled stair walls white.