What about simply encasing the railing in sheetrock to form a low half wall?

i've seen tv stands that basically have a wall on which to mount a flatscreen--it would hide the railing, at least.

here's one at c&b:
http://www.crateandbarrel.com/family.aspx?c=994&f=22294

i think ikea has some, too, if you're on a budget.

Kill the railing and build a half wall- you could even build in some storage or book cases.

What about trying a slip-cover? You could use a more modern fabric that would coordinate with the metal rail posts or even sheets of colored acrylic or thin metal sheets. Could be a cool look.

I'd flank it in something - wood planks, placed horizontally. would be simple but warm and a neutral background for your TV. On my not very dependable computer screen, the rail looks like it might be both silver & gold colored, in that case even coat of paint - white or match to the wall color - would be an improvement. Or maybe you could find a shoji type screen to put in front of it - not sure if you can find in different heights, but you could shorten one yourself. Or how about making a headboard of sorts - I'm sure there have been instrux on this site for making them and you could make a couple different pieces for each section of the rail. If you wanted you could even change the material each section was covered in.

I think the half-wall idea is pretty cool, maybe something 60" high which still offers the open-ness but gives you the right height for tv mounting. Also, building a new wall allows you to route cables inside before the sheetrock goes up. That's not really an expensive job, either. I'm guessing $200 for everything, if that.

I would paint the railing, either black or white; but built in shelving is also a nice idea. I wouldn't put your flatscreen there though - it will make it the first thing people see when they come in. If you do, it should be concealed behind cupboard doors.

How about replacing it with a glass railing to make it disappear all together? Something like this, but without the handrail attached. Just the glass sheet. http://www.artisticrail.com/glass.htm
It will open up the space better then a half wall and not obstruct your view of the TV. Good luck.

Click my name. I did a DIY glass system on my home and it's less intrusive.

AVOID THE HALF WALL! We have one in our apartment and hate it so much. (Too bad we can't change it) It's very distracting, and looks so cheap, regardless of how well built it is. You like contemp/modern, and the edge of that floor (under the rail) looks so sharp and airy, just beautiful. The glass would make it stand out more and make it look more intentional. There are MANY options to place your f.s.t.v. there, please don't settle for a clunky half-*** (pardon my French) solution. Great color floors! Keept it clean and airy. Oh and change that light fixture as well.

Wow, that existing railing is some kind of funky. I agree with not building a half-wall; glass or post-and-cable would be much more suitable. You have such a wonderful space, and I'd keep it as open as possible.

What about putting the flat-panel TV on the stairwell wall behind the railing? One with a minimal frame would look like - and could be used as - a picture. Pioneer makes (or made) some models that had a picture-frame surround; perhaps you could even have a custom frame fabricated for yours. Another possibility would be to use a projector with the back stairwell wall as a screen. I saw a fantastic example of this in a very narrow two-story home in San Francisco.

The pendant light would have to be moved or replaced, I suppose.

The media electronics could be put in a cabinet elsewhere, or possible in a low unobtrusive lowboy against the railing.