When organizing, I like to keep things in “zones.” To me that means everything similar in style and function should be located together and in the space it’s needed in (or very close by). In this case, all of the books we aren’t currently reading should all be together and close to a comfy spot to read.
This built in was already in the house when we bought it. To update this area, we plan on painting it grey or white and adding hardware. Where the TV is located will eventually become two more shelves for books. Until the space is updated, it will continue to hold the tiny TV and feature the extent of our book collection.
Organizing the book by color gives it some visual interest and a guaranteed comment every time we have guests. I never knew so many people would find delight in the way that books are arranged.