HI - Looks like painted over multi colored stone from the sixties/seventies . If you can I would have the big chunky stone removed and the reface with some new ledge cut stone that is very popular right now . I like the size of it and don't like the bookcases idea - just a place for clutter. Or if you are wanting an even more modern look then reface with some smooth granite or tiles . Look on Houzz for some ideas , there is a lot.

I like it! I'd put something taller on the far left side then something to hold a stack of wood, maybe a hang a mirror instead of the candle thing.

I think it's kind of amazing. It really needs a mantle, though... a big chunky one. Something to help ground it/ break up the sea of stone..

HI -- Christa - yes, that would look nice BUT how can it be attached to such chunky uneven stone ? I don't think that would be possible . The mantel idea would work better on a new front I think .

Very unique! I like unique!

A method used by someone in a similar situation is to drill brackets deep into the stone and add a hollow mantel around the brackets. See this forum post for more information: http://ths.gardenweb.com/forums/load/firepl/msg0108121210215.html?9

I really like the stone a lot. Found a picture that may inspire and it might be perfect with the mantel around the fireplace.

Just noticed your stained woodwork. Are you planning on keeping it stained?

I like the "hollow mantel installed all the way across" idea!

I think its a great wall - keep it! Add a modern or rustic mantel and surround to give the existing fireplace a little more prominence.

Thank you all so much for the great suggestions and ideas. I am loving the "hollow mantle shelf all the way across with a firewood stack on the left and mirror above fireplace" concept.
And yes, I am planning on painting the woodwork Navajo white by Benjamin Moore. I'll be changing wall color too. Not sure about that color yet... Thanks to all my new friends. Here's a pic of the rest of the room.