I agree with the above. I think the TV will look a little odd with two tall cabinets on either side and nothing underneath. Also, where would you store/hide the DVD player, stereo, cords and whatever other bits and bobs you have for the TV? What were you hoping to achieve with the cabinets? Did you want space to display collectibles? Did you want to introduce the azure colour into the room?

It is difficult to give suggestions as we cannot see the space you have. However, I like the idea of a pop-up flat screen. This would mean that the TV doesn't become the feature in the room. Alternately - You could have a wall unit built where the TV is hidden behind doors. If you have the room, have matching cabinetry on either side of the fire-place.

We recommend 1.1m in a living room and 1.4m for a bedroom. These are comfortable heights for sitting in a living room and lying down in a bedroom

I think you've identified some good concerns. But would the sun glare reach that far? Is the alfresco not covered? I like that the dining room and kitchen also have a view to the tv. I'd lose the fireplace, I know they have a lovely ambience but they're a lot of work to operate correctly. It's funny how designers talk about not wanting the tv to dominate a room but are fine with archaic heating technology which only has a purpose for half the year dominating the design decisions for a room.