Not everyone has (or wants) a home theater. Most everyone does have a living space with a TV.
The aesthetic and comfort of the living space often takes precedent over the technology related to watching TV and listening to music. The solution for a mixed-use room like this has to take this precedent into consideration. The solutions can go so far as the use of invisible speaker and hiding TVs within artwork or mirrors. Most often, however, the solution for a living room system simply revolves around attention to detail and fulfilling your needs in the cleanest, most efficient way possible.
Regardless of the path taken, the result is a seamless integration of technology into your home and your life.