Good for you! I love to do my own updates to my home whenever possible. Is that a gas fireplace or electric? Mine is gas, and had to have the firebox several inches above my wooden floor. This is just what I would do if this was my home. Since you do have quite a lot going on in this room, I (may not be your taste) would remove all of the diagonal pine. I would also remove the horizontal pine, and leave just the stone wall if you love it. I'd sheetrock those wall instead and paint them a color you like. I would also replace the octagonal windows, but I'd try to do it at the same time I'm updating the walls, if at all possible. I'd use the stone that I took off the wall to probably make the fireplace stone go up to the ceiling. See some examples HERE. Your ceiling is lower than most shown, but I would still do it and definitely get rid of the 'angled shoulders' on the fireplace. I'd then put a nice heavier beam/mantle up on it. and NOT have any wooden trim at the sides as yours has.

If you want to leave the wood panel and floors and stone fireplace, then go for it with Arts + Crafts, like wall covering and fabric from William Morris or Bradbury. Your room could look amazing. Do some research on Morris and Bradbury to get a feel for the luscious "camp" style. William Morris: https://www.designerwallcoverings.com/pages/history-of-william-morris Bradbury: https://www.google.com/search?sxsrf=ALeKk01jBdcLiOt41ucOYb7mDmxEXTpY4Q:1602649928391&source=univ&tbm=isch&q=bradbury+wallpaper&sa=X&ved=2ahUKEwiz-LidoLPsAhWoiOAKHUO3AGcQjJkEegQIDhAB&biw=1257&bih=978

Hmm, thank you for all the suggestions. The black trim is certainly going, even if painted or washed in the same color. I may consider the light grey wash for the near future to keep a natural but modern look. I will certainly take the advice of not painting with much of a sheen as well if thats the route I go. I really like the idea of building a wood surround and painting that white, but I do wonder about the color of the hearth remaining black if i then go about painting the wood trim surround white. I came accross this which inspired me to have a black fireplace, but i suppose it is a different look than what is already there. I was hoping to keep the cost down, but its not put of the question for a diy job or maybe adding it to the wish list down the line. As far as decoration- i do like the boho style, but my choice of decoration hasnt been leaning that way and it would clash. I do like the yellow though. Last, but not least, when the kids grow up more in a few years, i am flirting with the idea of moving the coffee table into the family room & play around with a different coffee table to better fit the room and fireplace if needed. Anyway Anyway, thanks again. Any other suggestions would be appreciated.

The problem is the size of the bookcases. they are really oversized for that spot. this style would fit better. (no shutters please) This tv you have is really too large for the spot. The fireplace box should have been longer if you wanted such a large tv. This looks top-heavy I hope the shutters are coming off that main window. I'd try a furniture arangement similar to this. stick some greenery in the one corner, get some drapes, on the other side maybe a large piece of art or a console I really like this one. I like the surround around the fireplace and the dark insert. You could do plants on the right and a shallow, wood shelf unit on the left: these are two narrow consoles that are flush w/the protrusion of the fireplace. better balanced is this an exterior wall? you could put in a few windows french doors would be nice too or, consider doing some nice built-ins like this that go better w/the style. scale is off, but some built in benches? taller cabs on either side, nice chandy this one is pretty minimal. console on on sid, a few floatings shelves on the other