Nothing wrong with the style of your rustic fireplace. I'll bet it fits the style of your home. The problem is all the random stuff around it. The fireplace wall is a feature in the room and needs to be grounded and the items above it cannot be light in color. Try something more like this. Find a new place for the skulls and family photos, but not together.

IMO a lot to tackle with no real plan. I think taupe is a wall color that has had its day and I don’t see a reason for that color at all. Those skimpy shelves need to removed and If you don’t plan on using the FP it i amking furniture placement and the TV hard to arrange. The realtors pics are not IMO a real look at the space so yours are much better. I can’t read the meaurements on the plan so it would be good to make those clear on the plan. Drapes are IMO one of the last choices you make. That wall color can lean towrds pink so I would get a large poster board and a sampl can of the color paint the board with 2 coats and see how you like it in all the spaces where you plan to use it. I do agree this is a time to hire a designer to help with an overall plan. German shmear is hard to pull off well and IMO better off to just apint the FP if you want to keep it. The TV needs to be on the opposite wall then 2 sofas or a sofa and 2 chairs if they fit. Lighting is what you need before paint choice so IMO you make sure all bulbs are LEDs in 4000K to mimic daylight , that will help keep colors true. I like a soft grayed green for a neutral wall color and with that rug would be a great choice.

IMO those cabinets are just kitchen ones and scream kitchen I also never like a TV above aFP so I would for sure remove the top cabinets remoce the counter and backspalsh and mount the TV on an articulating arm above one side and a piece of art on the other. If you are planning to redo the whole wall I would suggest a lower cabinet on either side to allow the TV to be mounted so that the center of the screen is at eye level whan you are seated. Then you could do a nice large format tile all the way to the ceiling above the fire box. For sure arrange the furniture so that one chair is not sitting all alone I love Besta from Ikea for TV S along with some nice storage .

I really like the aesthetic of a dark fireplace when there is a tv above the mantel. It keeps the TV from being such an eyesore because it kind of blends in. This is just one example I found quickly, you could look for others with your materials of choice. eta: I found a couple more examples