Hey pathfindermwd
My upstair living room looks very much like in your picture. Cathedral ceiling, hardwood. Plus one side opened to a dining room. Even with an 8'x 8' shaggy carpet and fluffy sofas, I couldn't get rid of the reverberation in th mids, which "killed" the bass (proportionally speaking). I removed the TV and sound system from that room. It was too painfull and it made me dizzy. The same system that was awfull in the living room got moved to the bedroom, where it sounded perfect with wall-to-wall carpet and big bed.
In your case, if you want to keep some music in there, you'll have to be creative with room treatment.