SFGate

decoenthusiaste You have the framework in place to make wonderful built-ins on both sides of the FP. I would remove the scallop trim and add doors below. Reinforce the horizontal shelving above so it is beefier and you can remove the vertical pieces. Here are a couple of ideas to go with it...

Shelley Gartside Yes..remove the scallop trim. Add a front piece to the center shelves on the top to make it look beefier, and if you're planning to put any heavier objects on those shelves you'll need a center upright for support. It looks like you like gray (curtains in the kitchen) paint the wall gray or pull a color from the fireplace and paint the wall behind the shelves. Whatever the color it should make the fireplace blend in more. Go to a thrift store and buy some books. Stand them up and lye some down on the shelves with the vases. Try to vary the size of the items on the shelves more. All the vases are about the same size. On the bottom I'd add more shelves in the larger spaces to try and even out the spaces to fit the baskets more. Then get more baskets to put toys etc in.

Susanna I like what everyone said so far and love the photo suggestion on the right but not white. Your fireplace will look richer or more expensive if you choose a color out of the stone. It can be a light color but not stark white.
I would not choose items that don't mean anything to you just for the sake of decor. Books are nice if you have read them or plan to, but otherwise seem staged and contrived. A friend of mine bought civil war subject books because of the covers . Everyone knows she doesn't read about the civil war so it just seems silly...like whose house is she living in? I suggest things you probably already have somewhere like framed family pictures, your son's first baby shoes, perhaps a teapot that was your Grandmother's or just one that you like (I have one on mine that an artist hand-painted and is too pretty to stick in a cupboard), your son's books, candles, your dried wedding bouquet or framed wedding invitation, travel souvenirs (I bought a snow globe in Paris) ....etc. The more personal it is the more it will be a sort of storyboard for your children and a sense of what their family is all about.

14thstreet I think this would be perfect for your space:
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14thstreet Okay in all seriousness, I like the other ideas. I really like the idea of using your books as accessories also. If you are considering changing some of the cabinet structure and beefing up the trim....is there a way to incorporate a TV in the built-ins perhaps? Do a false wall to bring it forward and then put it on a mount that allows you to angle it?
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bubbs5 Super easy quick fix and cheap! Replace ceiling fan and remove scalloped trim on built ins. Then paint the entire thing including the insides all one color. Will look better!

claudiann I like the lighted cabinets in the kitchen. How about painting the back of the shelves gray and use puck lights to highlight some of your beautiful pieces? This will add further light to the room. I think you could also add a larger rug.in front of the fireplace. One with gray in it would tie in to the kitchen. I would also consider bringing the couch off the wall and put it in front of the fireplace.