I've done something similar in my living room. I too did not want any shelves or make the room smaller by a huge media wall so we found a similar design to what we want.
Yes the TV is high
Weirdly enough, when I was planning the whole layout of the wall, we didn't have the sofa yet, and I was pretending to sit & stand to see where the TV should be, but somehow, it ended up high anyway
Doesn't bother us anymore though.
The slat wall is actually built by hand, instead of buying one of those super expensive slat panels. It's just some wood studs from Wickes, all hand sanded & stained. I then made them in 3 sections so it's easier to lift & attach onto the wall. Which now makes me think, the amount of time spent on making this wall, maybe expensive panels would work out cheaper lol.
I actually planned for having lights between the slats at some point, so the gaps were to accommodate a small aluminium channel for LED strip. This is another reason I used my own wood for slat wood, as most of those panels you can buy are not deep enough for light channels, at least weren't at the time we built this. If you look at the `before` photo, you can see there used to be a light on the wall where the slats are now, that's the wire I used to split 4 ways and power all 4 strips. The other side of that wire goes behind TV into the power supply.
Black aluminium channel works very well, you can't really see it unless you looking directly at it / for it.
The only other source of "ambient" light is where the curtains should go. Curtain rails are flush with the ceiling all along the wall where window is, so I made a little extrusion to hide a corner profile and shine light onto the wall / curtains (still haven't bought curtains lol).
This curtain light and strips between slats, are the only two light we ever use lol. Makes the room very cosy and surprisingly bright (all on dimmer switches). Just make sure if you're putting LED strip where it will be visible, to go with good quality strips with more LED's per metre, so you can't see individual dots when it's on.
Anyway, some pictures:
This was the before, when we bought the house
Making of the fake wall, to hide all wiring & home all LED power supplies.
Fake wall was plaster boarded, plastered & started painting
This was the end (ish) result. If you look at the frame photo before, there is a way for any cable to go from behind the TV into the cabinets, if needed, all behind the wall.
And the slat lights
Maybe any of this might help