What do I do with this odd space?

Four years ago, we transformed our hideous, yellow glazed family room & repainted with luscious (teehee), soothing green. Two or three (I can't remember - it was a daunting experience, so I think I've subconsciously discarded it from my memory) grueling days of two coats of primer & two coats of paint. At the time we had 3 young children, who totally ran amock for those days. Fun stuff. I lie. It was horrendous. (See my little Bentley climbing what he shouldn't be climbing? ;o)

As you can see below, I never completed the detailing. Uh huh. This is it's current state, four years later:

Around the fireplace, but also in two corners, where the accent color meets the room color. I freehanded the corners because I was just too darn tired to do it at the time & I really couldn't have cared less. The corners current state (that is actually a light green/sage on the right side):

Trust me when I say, it looks much worse in person. :) All that said, I'm finally considering finishing these areas. Maybe I'll get around to it in a year or two. I don't like to rush things. :)

So.

Here it is.

The most awkward, odd space(s) in our family room. Heck, in the entire house! What in the world? What were the builders thinking? Were they drunk? Why would they do this? Sheetrock would be better than this! But alas, it is what it is. And to be honest with you, that whole corner is strange. (You get a better view in the very first photo.) The tv armoire is caddy cornered because it won't fit flat in the space behind it. And having it situated like that, blocks one of my tiny family room windows which certainly does not tickle my fancy.

What to do? I'd like to pull the shelving off, but don't know if I can accomplish that without destroying the sheetrock. And where would I put the kids' books? I don't like traditional choices. (Like the brick I use as a bookend? I thought it was brilliant. :) As far as the triangle & box niche, I have absolutely no clue. This is all some sort of wood paneling stuff, so I can't really fill it in with sheetrock. Or can I? Plus the trim edging isn't flush with the paneling. Did I mention I despise paneling? But, that's another post. For someone (me) who is no longer 'country', we ended up with a totally 'country' home, right down (or up) to the wallpapered ceilings. :)

So, now tell me. If this was your goofy space in your home, how would you utilize it? How would you fill it? How would you camouflage it? 'Cause I got nothin'. Ü