Possibly a custom built in around it...maybe w/shelving. Using the same floor plan that's already around it. Utilize both sides of the built in. Section toward kitchen and other side into family room.To kind of disguise the elephant in the room.

If it's not too costly, I would take it out. It's an odd location for a fireplace regardless of what kind.

HI -- Is it worth it to you to have it removed -- I would . Maybe there is a better place for a fireplace without it having to be in a corner or in an odd place in the middle of the room. Now's your chance and I know if you don't do it now , it won't get done . Just like what everyone else gets stuck getting to it. Other stuff always gets in the way . Have someone in from a firelace store to see what they can do for you. Look for ideas on this site . Don't let the sales person talk you into the same location . They just want to do the easy thing and make a sale. I would also get rid of the odd added platform floor that's under the fireplace - looks like an add on. Good Luck !

Dimplex makes some awesome electric fireplaces that project out from the wall by about 7" and can be built in. I was unconvinced as to how an electric fireplace could look anything but awful until I saw one. Now I'm a convert! They produce what looks like a flame, but is not, and come in traditional styling and contemporary styling. I'm familiar with the contemporary one that is 50" wide by 20" high because I used it in a recent remodel of a 60s condo that we took totally contemporary, with fireplaces in the living room and master bedroom.

Thanks, everyone! Great ideas by all - gives me confidence to get rid of it!