Thank you for all your suggestions! All were great ideas! So this is what Im going to try. Leave the current setup in front of the TV and just bring the sofa in a bit more to make space for sofa table and then creating another seating area with 2 chairs flanking the fireplace. Also move the chaise near the bar with a floor lamp. Perfect! One last question, should i place a small rug in front of the fireplace area( maybe a round one) or leave it?

I love the idea of the wall hung tv shelf and lowering the TV. Thank you! The TV is new - a gift from the kids - so a replacement is not an option. There were hideous builder basic sconces when we moved in - I'd almost forgotten about them. If I basically leave the fireplace as it, what are you thoughts on painting the brick and the drywall immediately above it (to the ceiling) a charcoal grey to pull in the charcoal of my kitchen island cabinets? If not - would a wrap-around mantel work? We prefer clean lines vs. detailed, curved moulding. And any suggestions for the large space on blank wall to the left of the TV? Sorry for all the questions - I find this so overwhelming! @Beverly - what did you use to mark up my photo? it looks great. I wanted to hang curtains high like you have, but during the bump out a few years ago, the contractor installed the arched window directly above the large picture window instead of higher up in the vaulted ceiling as spec'ed. By the time we realized it, we were just so done with construction disruptions that we let it go. The only downside is that I can't hang curtains higher that the top of the window casing. The nighttime photos look really stark - between the glare of the recessed fixtures and the uncovered windows. We usually have the lights dimmed and during the day, the view is lovely.

We ended up sliding the window away from the tv wall so now we have about 27” from the tv wall to the first window. The fireplace bump in is going to be 66” wide with 14” between the edge of the bump in and the fireplace trim and about 21” deep. The bottom of the fireplace will be about 24” from the floor. The pic below was us playing around with dimensions and is not the final width we settled on but gives you a feel for the room. I’m super excited about this. Thank you all for your feedback! It was so helpful. And I will post finished pics when ready. But that will probably not be until May.

I like the suggestion that Annie gave about using four chairs facing one another. This is a really cozy arrangement especially if you want to relax and converse with friends. It's not that I don't like your mantle, but it's not that French glam that you're seeking, so I'd replace it with a beautifully carved one. I'd spray paint the bar/tea cart gold and use some Rub & Buff to give it a nice vintage finish and then place between the two chairs. If you use this configuration make sure to use a 8' or 9" square rug. They're harder to fine, but they're out there.