We have something similar to yours in our basement family room.....only an entire wall and deep as well. We have a center opening like yours for a tv that is not quite as low as yours, and 3 deep drywall shelves on each side. We bought a 40" tv....couldn't fit anything larger and it works fine. For now I have a combination of books, photographs and a few odds and ends sitting among them. Not the ideal situation, but it's not in our main living area (we don't have a tv in the main living area). You could always put deep baskets in the two openings on the right (for blankets, pillows, magazines, etc). I like Robo's idea above.

A long console under your TV....may have to lower the TV a bit. I would put some drapes or curtains up also. Not sure I would put anything on the wall by the TV but after getting the entertainment console, see how it looks first. A bookcase on the wall facing the windows....not on the TV wall would be good. I know you only asked about the TV wall but other things I would like to suggest....a table and lamp at the end of your couch (Chair end) and a floor lamp on the other end of your couch. Also a small table between your chairs...something like a garden stool for guest to put their coffee cups.

Thank you so much!!! Your ideas are very appreciated!!! Below is pic of rug that is in there. It has splashes of green (ties to kitchen) and lite blue (ties to gray living/dining walls that look blue lol). I thought I was following the rug rule that allowed for it to be in front of couches. To be honest it was a free rug, and matches the dining room and living room rugs and runner, I thought I was good keeping with the theme lol I actually just put this end table in my Amazon cart. Would something like that work? I have an extra lamp, shown in the living room pic to the right of couch I could put on top of end table. Is an entertainment/ build in look completely out of question? Think it would make room feel small? I will definitely move the pictures lower!!

It's probably like this one. A shallow projecting glassed in firebox. It just needs to go all the way up to the ceiling, not have the projection chopped off right on top of it. This is not meant to have a traditional mantle shelf.