It's hard to make any suggestion for two reasons -- the picture did not show the detail very clearly; the room is empty, a clean slate, with which you can do anything you want.

Are you keeping the tile floor? Is this a living room or extra sitting room that you want to be less formal? How much are you prepared to spend? Alterations of the kind you may be considering are likely to be very costly. They are also likely to be very mess, which means you are wise to plan them now that room is empty. Be prepared for dust all over the house -- it has a way of getting to the most unexpected places.

You might want to pose your question on the DECORATING section of this web site.

You have a beautiful room! I love all of the windows and the vaulted ceilings. Have you ever thought of cladding your brick fireplace in cast limestone? You may be able to cover the brick with a mantel and overmantel. It would completely transform the room.