I like it. Is it cutting edge trendy? Not even close, but I like it. It's homey and comfortable. If it were mine, I wouldn't paint. If you paint, you're going to have to paint not only the shelves, but the lower half of the walls and the ceiling beams ... and in the process you'd lose so much warmth and character. If you feel you MUST do something, I'd do the fireplace in a white wash -- a dirty white wash that'd allow a bit of color to show through. You could test this: Tape up some white paper on the fireplace and live with it a while. I wonder how much of your dissatisfaction has to do with lighting. I see you have several lamps burning. What if you could do something along the lines of in-cabinet lighting -- you know, like they do in kitchens -- in the shelves. Or what if you bring in color in your furniture? Instead of painting the room itself, bring in a RED sofa ... or paint the (completely removeable) table and TV stand a bright color.

Do you suggest going light or dark gray? Any paint color you can suggest in the gray familt?

I am not sure what I think yet - but if round chandelier is bronze, and a wall is painted dark, that might be reason to include another dark 'piece' [the mantel].

I agree with "bethperson" about removing the top uprights. They are drawing the eye to the ceiling rather than framing the fireplace. I would not cover the niche with doors as it looks spectacular with the horse and other objects in it. I would kill for a spot like that to display things and make seasonal statements. I might consider a lighter color on the back wall of the niche to provide a contrasting backdrop for darker objects. You appear to have lighter paint behind the sofa so I would try a bit of that on the rear wall of the niche. I also agree with "bethperson's" idea of beefing up the mantel. I agree that the wood seems a bit orangey but if you are planning to replace your floors someday you might want to decide then on a color or wood stain that compliments the floor. Until then just removing the top uprights will minimize the overwhelming effect of the wood color. Also, I believe that wood is not a precious substance. It takes a little courage to paint or stain it sometimes but unless it is a pricey, endangered or historically antique wood just do what makes you happy. That's what a house of your own is for.