I had picked up a role of this beautiful toile wallpaper a while ago, just because I needed to do something with it sometime. So because removing the tv is such a huge ordeal, I decided to "wallpaper" without removing the tv. It was fun and easy. I used staples that are hidden so there was no mess.
I am getting a lot of experience on the miter saw, so I trimed out the niche with a picture frame moulding. I painted the shelf and the moulding the same color as the wall. This was because I did not want this area to compete with the true focal point, the mantel and fireplace, right next to the niche.
Someday I would actually like to wall in the entire niche and use a flat screen, the entire thing just bothers me. BUT I really love this solution, for now. It softens the media crud and gives a little of the unexpected.
Where is your problem spot in your house? Stay tuned for more problems and solutions!