You are absolutely correct. I think the issue is the furniture style and light fixture are clashing with the wainscoting and feature wall.

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OP, I think you just need more formal furniture either transitional or traditional in style. I don't agree with other comments suggesting mismatched chairs. That looks cool in photos when the surrounding house is a mansion and you know a designer picked out excellent pieces to evoke a sense of eclectic whimsy. While your room is beautiful, I presume you do not live in a mansion and don't have a designer, so mismatched pieces will just make it look like you can't afford something cohesive. It won't come off as whimsy or style, but rather necessity.