Is the second picture as the room is now? Is that a sectional or sofa and love seat? Need another photo showing what other furniture is needed; two tripod floor lamps may be all you need on either side. They are architecturally interesting and fill a space.

I wouldn't worry about the left side. over there you could do a tall plant or a piece of art. why in the world is the outlet in the middle of the wall? as for the component issue, you could do some floating shelving or a floating console to hold your electronics. ignore the tv.. floating shelves you could build a bench too

Since you only have to decorate the first story of a space, basically at eye level, you can pretty much disregard all the additional height and ‘stuff’ - including the rest of fireplace, technically. The room height is nice for the feeling of spaciousness that it offers, but what is at eye level is mainly the predominant decorating concern. i would start with a large piece of art. I think that is all it needs. And if you wanted to, you could tie the grey and stone colors in with the colors in that piece of art. But you don’t have to necessarily go that route. Could be any art that resonates with you. And I don’t know your setup for lighting, but if you wanted to add more to that - maybe a chandelier to enhance the art/design.

To my eye the fireplace does not have attractive proportions. The hearth is too wide and and overly deep for its height, the wood box is too small, the ceiling trim too bulky, mantle too large and too high. And the doorway looks squashed in beside it. No amount of whitewashing or painting is is going to change any of that. The good news is that it looks like the stone isn't boulders stacked up like some of the photos people have posted above. I think it's rock veneer, flat pieces of rock stuck to a cement/wire mesh base. If it's veneer, you should be able to see that from the side. Can you stand by the round mirror and take a picture for us? Veneer can be removed relatively easily by someone with experience and the right tools. Then you can have the room you want. You can shorten the hearth and put the TV to the left of the fireplace which would look much better than above it. Now is the time to do it, when you're re-doing the floor. If not, be sure to keep a box of the flooring for later if you want to remove or shorten the hearth and need to fill in the floor. My house also had an overpowering stone fireplace and the best thing we ever did was replace it with a normally-proportioned fireplace surround. IMO these large stone fireplace walls look great in big chalet-style homes with high ceilings, and are out of place in regular homes.