Dont be afraid of the floors. they will be carpeted at first and then hard wood. :)

Sure, bookshelves on either side with a decorative wood surround and mantle would cover most of the bricks. Add a painting in the center and only a hint of brick will be showing. Alternatively you could remove the brick altogether and treat the wall any way you like!

Archi/Build says it all.
We are LOVING the flooring. Why don't you think about it.....
We really don't know why everyone wants to paint brick (in this case the brick multi color you have really is a bit much with that dramatic floor), but if you do make sure that a pro does it and paint it the color of the shelving. Could be fabulous.

If this will ultimately be a formal dining room. I think I would remove the brick and add your cabinets on each side with a paneled formal look such as this;)

I definitely want to remove the brick. What about using a stone?

Maybe a stacked veneer;) rest arrow on pic to enlarge

That is very cool! Would you bring the veneer to the ground or stop at the hearth? cover the hearth?

I would remove the hearth and run the veneer just like in the photo.

I'm renovating a fireplace wall at the moment too. I'm jealous that you have better attributes to work with than me! ;)

I'd stay away from stacked stone. Yes, I like the look, but it's been SO popular for quite a while, I think the style will not age well and will look dated in the near-to-mid future. Just my 2-cents.

I might add cabinets to either side of the fireplace - solid cabinets/drawers on the bottom half, and shelves or cabinets with glass or solid doors on top. It depends on what type of storage you need, if any.

Do you want to keep the raised hearth or would a floating fireplace suit you better? (Pic 1 is floating)

Here's some examples - if not in quite the correct transitional style - that have some interesting ideas (leaving the brick exposed behind the shelving, for one).

Best of luck!

How has this project turned out? Would love to see! :)